Practise IB Economics SL 3.6.5 by evaluating the effectiveness, limitations and trade-offs of fiscal policy with marked exam evidence.
Evaluate government policies used to deal with cyclical unemployment.
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.
Answers may include:
- definition of cyclical unemployment
- explanation of various government policies such as expansionary fiscal policy, expansionary monetary policy;
explanation that supply-side policies could be used with cyclical unemployment eg employment subsidies
- diagram showing a fall in AD to illustrate cyclical unemployment or diagram showing an increase in AD to illustrate the effect of expansionary policies used to deal with it
- examples of the application of policies to reduce cyclical unemployment
- synthesis or evaluation of various policies.
Evaluation may include: impact on inflation, time lags, economic growth and budget deficit.
Opinions or conclusions should be presented clearly and supported by appropriate examples.
Assessment Criteria
Part (b) 15 marks
Level 0 (0 marks): The work does not reach a standard described by the descriptors below.
Level 1 (1-5 marks): There is little understanding of the specific demands of the question. Relevant economic terms are not defined. There is very little knowledge of relevant economic theory. There are significant errors.
Level 2 (6-9 marks): There is some understanding of the specific demands of the question. Some relevant economic terms are defined. There is some knowledge of relevant economic theory. There are some errors.
Level 3 (10-12 marks): There is understanding of the specific demands of the question. Relevant economic terms are defined. Relevant economic theory is explained and applied. Where appropriate, diagrams are included and applied. Where appropriate, examples are used. There is an attempt at synthesis or evaluation. There are few errors.
Level 4 (13-15 marks): There is clear understanding of the specific demands of the question. Relevant economic terms are clearly defined. Relevant economic theory is clearly explained and applied. Where appropriate, diagrams are included and applied effectively. Where appropriate, examples are used effectively. There is evidence of appropriate synthesis or evaluation. There are no significant errors.