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CAIE IGCSE Economics 4.4.3 Effects of Supply Side Policy Measures on Government Macroeconomic Aims Questions

Practise Cambridge IGCSE Economics by analysing supply-side effects on productive potential, growth, employment and inflation, then evaluating policy trade-offs.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Explain how successful supply-side policy increases productive potential, productivity and long-run economic growth.
  • Analyse how supply-side measures such as education, transport or corporation-tax changes can affect employment and macroeconomic aims.
  • Evaluate whether supply-side policies can reduce inflation or a budget deficit, considering costs, time lags and trade-offs.

CAIE IGCSE Economics 4.4.3 Effects of Supply Side Policy Measures on Government Macroeconomic Aims Questions question 1

[Maximum number: 1]

What does a successful supply-side policy increase in an economy?

A

the level of unemployment

B

the production possibilities

C

the rate of inflation

D

the rate of interest

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