A-LevelEconomicsGovernment macroeconomic intervention9708/41 · May/June 2017 · Q625 Marks

Governments have a range of macroeconomic aims apart from economic growth.

(a)Explain the other main macroeconomic aims a government might have apart from economic growth.[12]
(b)Discuss whether there is always a consistent link between investment and economic growth.[13]

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

[12] Description of macroeconomic aims with relation to price stability, balance of payments, employment, income distribution.
[12] Level 4 (9-12 marks): for a sound description with good illustration and a clear understanding of all four aims.
[13] Discussion of link between investment and national income via multiplier, but also between income, demand and investment by the accelerator. Comment on possible differences due to differing injections, leakages, possible effect on prices rather than output of changes in investment.
[13] Level 4 (9-13 marks): for a reasoned and clear discussion with accurate explanation of the theory with possible different outcomes together with a conclusion.

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 25 marks.
Source: A-Level Economics, May/June 2017 Paper 4 Variant 1, question 6.

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