AS & A Level / Economics / Fiscal, monetary and supply policies Question practice
Fiscal, monetary and supply policies About this practice Original, unofficial practice. Evaluative marking points are indicative: credit equivalent justified arguments, one point per distinct criterion, without double counting.
Accept equivalent valid methods and supported interpretations that address the task. Award each mark once; matching the model wording is not required.
Economics Fiscal, monetary and supply policies
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1 Explain how progressive income taxes can act as an automatic stabiliser during a recession without a new policy decision. Easy 2 marks No calculator + 2 Fictional government: tax receipts are 420 million, spending excluding interest is 460 million and interest payments are 20 million. Calculate the primary and overall budget balances, defining balance as receipts minus spending. Easy 3 marks Calculator + 3 Fictional case: the policy interest rate falls, but banks tighten lending standards and most households have fixed-rate loans. Analyse why consumption and investment might respond weakly. Medium 4 marks No calculator + 4 Fictional case: a government funds apprenticeships and faster freight infrastructure. Analyse how each can affect long-run aggregate supply and why budget expenditure alone does not prove success. Medium 4 marks No calculator + 5 Fictional case: Navo is in recession with low interest rates and substantial public debt. Evaluate temporary infrastructure spending financed by borrowing. Hard 4 marks No calculator + 6 Fictional case: Rima proposes deregulating entry into electricity retail while keeping the transmission network regulated. Evaluate the potential benefits and limits of this split. Hard 4 marks No calculator + Self-assessed Not marked yet
Set total 21
This is a self-study tool, not a certified answer key or a predicted AS & A Level grade.
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Original questions, not official past papers. Marking guidance is indicative, not an official answer key. Check your exam-board specification.
