Practise IB Economics SL/HL 3.7.4 by applying demand-side and supply-side interactions concepts to exam-style questions.
Explain how interventionist supply-side policies can have both demand-side and supply-side effects on the economy.
Explain how interventionist supply-side policies can have both demand-side and supply
side effects on the economy.
Answers may include:
- Terminology: interventionist supply-side policies, supply-side policies.
- Explanation: of interventionist supply-side policies, such as education/training, improving quality, quantity and access to healthcare, research and development, provision of infrastructure and industrial policies, and how these can increase both aggregate demand (AD) and long-run aggregate supply (LRAS) through an increase in the productive capacity of the economy.
- Diagram: AD/AS showing AD and LRAS shifting to the right.
A maximum of [6] should be awarded if only the demand-side or the supply-side effects are explained.
Assessment Criteria
Part (a) 10 marks
Marks
Level descriptor
0
- The work does not reach a standard described by the descriptors below.
1-2
- The response indicates little understanding of the specific demands of the question.
- Economic theory is stated but it is not relevant.
- Economic terms are stated but they are not relevant.
3-4
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
5-6
- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.
- Relevant economic theory is partly explained.
- Some relevant economic terms are used appropriately.
- Where appropriate, relevant diagram(s) are included.
7-8
- The specific demands of the question are understood and addressed.
- Relevant economic theory is explained.
- Relevant economic terms are used mostly appropriately.
- Where appropriate, relevant diagram(s) are included and explained.
9-10
- The specific demands of the question are understood and addressed.
- Relevant economic theory is fully explained.
- Relevant economic terms are used appropriately throughout the response.
- Where appropriate, relevant diagram(s) are included and fully explained.