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Edexcel IGCSE Economics 2.1.3 A Macroeconomic Policy Trade Offs Questions

Practise policy-trade-off questions by linking unemployment, inflation, growth and environmental protection in data-rich examples.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Link falling unemployment to higher incomes, consumer spending and inflationary pressure.
  • Explain how environmental restrictions can reduce output or jobs in affected industries.
  • State trade-offs involving inflation, unemployment, growth or the current account.

Edexcel IGCSE Economics 2.1.3 A Macroeconomic Policy Trade Offs Questions question 1

[Maximum number: 1]

What is likely to happen if a government successfully reduces unemployment?

A

Inflation might rise as more people have money to spend

B

More people working leads to lower overall economic growth

C

Inflation decreases because people have less money to spend

D

Government spending on benefits would increase

All question bank results loaded