The US operates a mainly market economic system. Life expectancy in the US fell in 2017, for the third year in a row. Although the US has a high GDP per head, it also has a high level of income inequality. The poor benefited from the US's low and stable inflation rate. The government's supply-side policy measures were partly responsible for reducing inflationary pressure.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

1. [2] (a) Two from: progressive taxation; state benefits; spending on state education / training; spending on state healthcare; equal pay legislation; minimum wage.
2. [4] (b) Logical explanation which might include: Consumer sovereignty (1) with consumers deciding what goods and services are produced (1). Low prices (1) due to competition (1). High quality (1) due to innovation (1). Consumer choice (1) variety of products produced (1). Greater efficiency (1) due to the profit motive (1). Automatic adjustment to changes in demand and supply / quick response to changes in demand and supply (1) via changes in price / with use of the price mechanism / increase consumer satisfaction (1).
3. [6] (c) Coherent analysis which might include: Incomes may fall (1) lowering living standards / reducing access to basic necessities (1). Reduction in healthcare (1) e.g limited access to medication (1). Reduction in education (1) people may lead less healthy lives (1) more smoking (1) more 'junk food' (1) less exercise (1). Rise in poor nutrition / malnutrition (1) eating more low-quality food / people not having enough food (1). More pollution (1) making people more susceptible to diseases (1). May be spread of new diseases / pandemics (1) wars / civil unrest (1). Climate change (1) may result in more natural disasters (1). More people employed in jobs with poor working conditions / more dangerous jobs (1) resulting in more sickness / accidents (1).
4. [8] (d) Why they might: they may increase total (aggregate) supply, reducing cost-push inflation; they can allow total (aggregate) demand to increase without causing inflation; education and training can increase labour productivity, reducing labour costs; a cut in direct taxes may increase the incentive to be more productive and more innovative; labour market reforms may reduce power of trade unions and reduce rise in wages; subsidies can lower costs of production. Why they might not: privatisation does not always increase competition and so does not always lower prices; education and training can be expensive, may be in areas that are not in demand and will have a time lag; cuts in income tax may increase total (aggregate) demand as well as total (aggregate) supply; resource limitations / unable to increase productive capacity due to e.g. limited land available; inflation may be caused by rise in price of raw materials which have no domestic substitute e.g. oil.