A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2019Paper 1 Q301 Mark
The diagram shows the AD/AS curves for an economy. Which policy would reduce the price level from P₁ to P2 as shown?
Adepreciating the currency to make imports more expensive
Bimposing tariffs on imports to encourage expenditure switching
Cincreasing labour productivity through training
Draising sales taxes on goods to discourage consumption
✓ 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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