A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2018Paper 1 Q301 Mark
In an economy, prices are rising. The government wishes to limit further increases in prices. Which policies would it be likely to use?
Adecrease goods and services (sales) tax and put a quota on cheap imports
Bdecrease income tax and decrease interest rates
Cincrease interest rates and decrease government spending
Dwithdraw industry subsidies and impose a minimum wage
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of government macroeconomic intervention within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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