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CAIE A-Level Economics AS 5.1.1 Macroeconomic Policy Objectives Questions

Practise explaining how government policy targets price stability, low unemployment and economic growth in CAIE Economics AS questions and mark schemes.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain how government policies pursue price stability, low unemployment and economic growth, including the relevant policy aims.

CAIE A-Level Economics AS 5.1.1 Macroeconomic Policy Objectives Questions question 1

[Maximum number: 1]

Sweden had a change in its Consumer Prices Index (CPI) of -0.6 %.
Which combination of policies might its government use to restore price stability?

A

increase interest rates and increase indirect taxes

B

increase interest rates and reduce government spending

C

reduce government spending and increase income tax

D

reduce interest rates and increase government spending

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