Government macroeconomic intervention
4.1What the syllabus asks of you
- Macroeconomic aims: the macroeconomic aims of government: economic growth; full employment/low unemployment; stable prices/low inflation; balance of payments stability; redistribution of income; environmental sustainability
- Macroeconomic aims: reasons behind the choice of aims and the criteria that governments may set for meeting each aim
- Macroeconomic aims: possible conflicts between macroeconomic aims: full employment and stable prices; economic growth and environmental sustainability; full employment and balance of payments stability
Read the notes first
Chapter 4: Government macroeconomic intervention
Drill this topic
Every question on Government macroeconomic intervention, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
21 questions
1May / June 2026 · Paper 12 · Q4Show mark scheme →
Aa government increasing the unit tax on petrol
Ba central bank having an inflation target of 2%
Ca monopoly increasing its profit target by 2%
Da trade union increasing the living standards of its members
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2May / June 2026 · Paper 12 · Q18Show mark scheme →
Agiving grants for travel to overcome high transport costs
Boffering training to raise worker productivity
Cproviding information on job vacancies to raise mobility
Draising benefits to increase living standards
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3Oct / Nov 2025 · Paper 13 · Q18Show mark scheme →
A1 and 2
B1 and 4
C2 and 3
D3 and 4
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4May / June 2025 · Paper 11 · Q17Show mark scheme →
Ahigh external costs
Bhigh sales tax
Clow unemployment
Dlow wages
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5May / June 2025 · Paper 12 · Q4Show mark scheme →
Aa school recruits more teachers | a firm sets the prices for its products
Ba central bank reduces money supply | a government spends more on defence
Ca government increases tax rates | a farmer decides which crops to grow
Da household cuts its energy use | a worker accepts an offer of overtime
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6Oct / Nov 2024 · Paper 13 · Q17Show mark scheme →
Aequilibrium prices in markets
Bhigh wages
Clow inflation
Dprofit maximisation
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7May / June 2024 · Paper 12 · Q4Show mark scheme →
Athe growth in Chinese Gross Domestic Product
Bthe level of Consumer Prices Index inflation in the UK
Cthe level of unemployment in Spain
Dthe total output of the German car industry
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8May / June 2023 · Paper 11 · Q17Show mark scheme →
Aa minimum of 10 years of schooling
Ba sales tax of 10% on consumer goods
Ca target rate of 2% inflation
Dincreasing pay for nurses
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9May / June 2022 · Paper 11 · Q5Show mark scheme →
ABetter skilled workers may increase productivity and improve economic growth.
BIncreased wage-earning capacity may lead to demand-pull inflation.
CMore employed workers may reduce government expenditure on benefit payments.
DNear full employment may result in a more stable balance of payments.
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10May / June 2022 · Paper 12 · Q4Show mark scheme →
Athe relationship between the inflation rate and the unemployment rate
Bthe relationship between the output of a firm and its costs of production
Cthe relationship between the price of a product and the quantity demanded by a consumer
Dthe relationship between the wage rate of workers and demand for labour in an occupation
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11Oct / Nov 2021 · Paper 12 · Q6Show mark scheme →
Abalance of payments stability
Bdeflation
Cincome inequality
Dunemployment
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12Oct / Nov 2020 · Paper 12 · Q4Show mark scheme →
Ato create and maintain full employment
Bto improve efficiency in the manufacturing sector of the economy
Cto provide consumers with greater information when buying goods and services
Dto encourage greater occupational mobility of labour
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13Oct / Nov 2020 · Paper 12 · Q16Show mark scheme →
Ato encourage an increase in production and to prevent high inflation
Bto ensure no one is unemployed and to reduce exports
Cto give everyone equal incomes and to increase government revenue
Dto protect the environment and to reduce interest rates
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14Oct / Nov 2020 · Paper 13 · Q16Show mark scheme →
Ato encourage an increase in production and to prevent high inflation
Bto ensure no one is unemployed and to reduce exports
Cto give everyone equal incomes and to increase government revenue
Dto protect the environment and to reduce interest rates
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15May / June 2020 · Paper 11 · Q19Show mark scheme →
Athe incentive to work
Bthe level of savings
Cthe need for welfare payments
Dthe rate of inflation
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16Oct / Nov 2018 · Paper 12 · Q19Show mark scheme →
Afull employment / price stability
Bhigh economic growth / full employment
Cprice stability / stable balance of payments
Dstable balance of payments / more even distribution of income
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17Oct / Nov 2018 · Paper 13 · Q19Show mark scheme →
Afull employment / price stability
Bhigh economic growth / full employment
Cprice stability / stable balance of payments
Dstable balance of payments / more even distribution of income
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18May / June 2018 · Paper 11 · Q17Show mark scheme →
Aincome tax
Binterest rates
Cstable prices
Dunemployment
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19May / June 2018 · Paper 12 · Q17Show mark scheme →
Aincome tax
Binterest rates
Cstable prices
Dunemployment
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20May / June 2017 · Paper 11 · Q18Show mark scheme →
AAchieving a more even distribution of income may prevent a rise in the average standard of living.
BAchieving an increase in economic growth may prevent full employment.
CAchieving full employment may prevent stable prices.
DAchieving stable prices may prevent a current account surplus on the balance of payments.
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21May / June 2017 · Paper 12 · Q18Show mark scheme →
AAchieving a more even distribution of income may prevent a rise in the average standard of living.
BAchieving an increase in economic growth may prevent full employment.
CAchieving full employment may prevent stable prices.
DAchieving stable prices may prevent a current account surplus on the balance of payments.
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