IB Economics HL 3.7.4 Demand Side and Supply Side Interactions Topic Practice

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.