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Date May 2018 Marks available 15 Reference code 18M.1.SL.TZ2.4
Level Standard level Paper Paper 1 Time zone Time zone 2
Command term Evaluate Question number 4 Adapted from N/A

Question

Explain how expansionary fiscal policy could be used to close a deflationary (recessionary) gap.

[10]
a.

Evaluate the view that fiscal policy is the most effective way of achieving long-term economic growth.

[15]
b.

Markscheme

Answers may include:

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part A.

a.

Answers may include:

Evaluation may include: the type of fiscal policy and how it is financed, advantages and disadvantages of fiscal policy, consideration of alternative policies, such as monetary and supply-side policies, consideration of ‘best.’

NB Candidates who only consider the effects of fiscal policy on AD, and do not consider the supply side effects on long-term economic growth cannot be awarded above Level 2.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Opinions or conclusions should be presented clearly and should be supported by appropriate examples.

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part B.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

Last exams 2021 » Section 2: Macroeconomics » 2.4 Fiscal policy » The role of fiscal policy » Fiscal policy and its impact on potential output
Last exams 2021 » Section 2: Macroeconomics » 2.4 Fiscal policy » The role of fiscal policy
First exams 2022 » Unit 3: Macroeconomics » 3.6 Demand management—fiscal policy » 3.6.5 Effectiveness of fiscal policy
Last exams 2021 » Section 2: Macroeconomics » 2.4 Fiscal policy
First exams 2022 » Unit 3: Macroeconomics » 3.6 Demand management—fiscal policy
Last exams 2021 » Section 2: Macroeconomics
First exams 2022 » Unit 3: Macroeconomics
First exams 2022
Last exams 2021

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