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Edexcel IGCSE Economics 2.1.3 relationships between objectives and policies

Use policy-trade-off questions to connect lower unemployment, environmental restrictions and inflation with gains and costs for the economy.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Explain how lower unemployment can raise spending and demand-pull inflation.
  • State or analyse trade-offs between inflation, growth, unemployment and the current account.
  • Apply growth versus environmental protection trade-offs to restrictions on firms.

Covered syllabus points

2.1.3.a Macroeconomic policy trade-offs

2.1.3 Relationships between objectives and policies 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