Government and the macroeconomy

Worked examples (6)

• 1Define a 'macroeconomic objective' (2 marks)
• 2Explain the four macroeconomic objectives (4 marks)
• 3Analyse the unemployment–inflation trade-off (6 marks)
• 4Analyse conflicts between growth and other objectives (6 marks)
• 5Discuss whether low inflation should be the top objective (8 marks)
• 6Discuss whether the environment should be an objective (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'fiscal policy' (2 marks)
• 2Distinguish fiscal and monetary policy (4 marks)
• 3Analyse expansionary fiscal policy in a recession (6 marks)
• 4Analyse contractionary monetary policy (6 marks)
• 5Discuss whether fiscal policy is best for a recession (8 marks)
• 6Discuss whether higher taxes harm an economy (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'supply-side policy' (2 marks)
• 2Explain how education raises capacity (4 marks)
• 3Analyse how supply-side policy raises output (6 marks)
• 4Analyse a cut in income tax as supply-side policy (6 marks)
• 5Discuss whether supply-side policy is best for growth (8 marks)
• 6Discuss supply-side vs demand-side for unemployment (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'economic growth' (2 marks)
• 2Explain how growth is measured (4 marks)
• 3Analyse causes of economic growth (6 marks)
• 4Analyse causes and consequences of a recession (6 marks)
• 5Discuss whether growth always raises living standards (8 marks)
• 6Discuss whether growth is worth the environmental cost (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'unemployment' (2 marks)
• 2Explain cyclical vs structural unemployment (4 marks)
• 3Analyse the costs of unemployment (6 marks)
• 4Analyse a national minimum wage diagram (6 marks)
• 5Discuss whether a minimum wage benefits an economy (8 marks)
• 6Discuss whether cutting benefits reduces unemployment (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'inflation' (2 marks)
• 2Explain demand-pull vs cost-push inflation (4 marks)
• 3Analyse the costs of high inflation (6 marks)
• 4Analyse how higher interest rates reduce inflation (6 marks)
• 5Discuss whether inflation is always harmful (8 marks)
• 6Discuss whether interest rates are best to control inflation (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style