Government macroeconomic intervention (AS Level)

Worked examples (6)

• 1Identify macroeconomic objectives (3 marks)
• 2Match policy to objective (4 marks)
• 3Explain why price stability is an objective (5 marks)
• 4Choose objectives for an economy's situation (5 marks)
• 5Supply-side policy and long-run objectives (6 marks)
• 6Evaluate prioritising one objective (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Distinguish deficit and national debt (3 marks)
• 2Calculate marginal and average tax rates (4 marks)
• 3Classify tax structures (4 marks)
• 4Expansionary fiscal policy on AD/AS (5 marks)
• 5Explain crowding out (6 marks)
• 6Evaluate a tax cut to boost the economy (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Identify monetary policy tools (3 marks)
• 2Classify monetary policy direction (4 marks)
• 3Explain the transmission of lower rates (5 marks)
• 4Contractionary monetary policy on AD/AS (5 marks)
• 5Why monetary policy may be ineffective (6 marks)
• 6Evaluate monetary vs fiscal for inflation (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Identify supply-side tools (3 marks)
• 2Supply-side vs demand-side (4 marks)
• 3How training raises capacity (5 marks)
• 4Supply-side policy on AD/AS (5 marks)
• 5Limitations of supply-side policy (6 marks)
• 6Evaluate supply-side policy for growth (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style