Question 1
Using real-world examples, discuss whether high economic growth will always conflict with the other macroeconomic objectives.
Answers may include:
- Terminology: economic growth, macroeconomic objectives.
- Explanation: that higher economic growth may or may not involve conflicts;
potential conflicts include: low inflation, environmental sustainability and/or equity in income distribution. Economic growth may not always involve conflict if an outward shift of the LRAS curve lowers the rate of inflation, it results in growth that protects the environment, the growth is accompanied by measures to ensure a more equal distribution of income, and/or the growth results in increased employment.
- Diagram: any relevant diagram, such as an AD/AS diagram to show AD shifting to the right and/or LRAS shifting to the right or a Lorenz curve diagram.
- Synthesis (discuss): if the candidate starts the answer with a discussion of the possible conflicts, a counter-balancing discussion of the reasons why there might not be any conflicts can count as evaluation (discussion) or vice versa
- Examples: real-world examples where a higher rate of economic growth either has or has not conflicted with other macroeconomic objectives.
N.B. It should be noted that definitions, theory and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Assessment Criteria
Part (b) 15 marks
Marks
Level descriptor
0
- The work does not reach a standard described by the descriptors below.
1-3
- 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.
- The response contains no evidence of synthesis or evaluation.
- A real-world example(s) is identified but it is irrelevant.
4-6
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
- The response contains evidence of superficial synthesis or evaluation.
- A relevant real-world example(s) is identified.
7-9
- 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.
- The response contains evidence of appropriate synthesis or evaluation but lacks balance.
- A relevant real-world example(s) is identified and partly developed in the context of the question.
10-12
- 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.
- The response contains evidence of appropriate synthesis or evaluation that is mostly balanced.
- A relevant real-world example(s) is identified and developed in the context of the question.
13-15
- 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.
- The response contains evidence of effective and balanced synthesis or evaluation.
- A relevant real-world example(s) is identified and fully developed to support the argument.