DP Economics Questionbank

Evaluate government policies to deal with the different types of unemployment.

Using an AD/AS diagram to support your answer, explain the mechanism through which monetary policy can help an economy reduce the level of unemployment.

State one reason why monetary policy is considered to have limited effectiveness in increasing aggregate demand if an economy is in a deep recession.

Evaluate the effectiveness of monetary policy in reducing an economy’s rate of unemployment.

Evaluate the effectiveness of monetary policy in reducing an economy’s rate of inflation.

Evaluate the view that fiscal policy is the best way to reduce unemployment.

Using real-world examples, evaluate the effectiveness of monetary policy to achieve low inflation.

Using real-world examples, evaluate the effectiveness of monetary policy to achieve low unemployment.