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A-LevelEconomicsGovernment macroeconomic intervention9708/32 · May/June 2018 · Q291 Mark

The Consumer Prices Index (CPI) fell by 3% in a year. Unemployment was regarded as unacceptably high. Which combination of policies would a government be most likely to adopt in such circumstances? A an appreciation of the currency, together with an increase in the rate of interest B increased government expenditure on education, together with an increase in taxes to pay for it C increased indirect taxes, together with a depreciation in the exchange rate D reduced income taxes, together with a cut in the rate of interest

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

  1. [1] D

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2018 Paper 3 Variant 2, question 29.

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