A-LevelEconomicsMacroeconomic PoliciesMay/June 2017Paper 1 Q301 Mark

An economy is currently operating close to its full employment level of national income. Which combination of macro-economic policies would be most likely to have net deflationary effects?

Q: What topic does this question test?

This question tests Macroeconomic Policies in A-Level Economics (syllabus code 9708). It is worth 1 mark.

A10% cut in the standard rate of income tax and a 5% devaluation of the currency

B10% cut in the standard rate of income tax and a 5% revaluation of the currency

C10% rise in the standard rate of income tax and a 5% devaluation of the currency

D10% rise in the standard rate of income tax and a 5% revaluation of the currency

✓ Correct Answer

The correct answer is D: 10% rise in the standard rate of income tax and a 5% revaluation of the currency

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Macroeconomic Policies in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2017 examination, Paper 1 Variant 2.

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