CAIE A-Level Economics 5.4.2 Supply-side Policy Objectives

CAIE A-Level Economics 5.4.2 Supply-side Policy Objectives
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise identifying productivity and productive-capacity objectives from output, employment and capital evidence and calculating where labour productivity changes most.

How this is tested

  • calculate labour-productivity growth by comparing output growth with employment growth
  • link automation, training or better capital quality to more output per worker
  • distinguish higher productive capacity from a temporary increase in aggregate demand

Question 28

[Maximum number: 1]

Which combination identifies a main aim of supply-side policy and a measure used to achieve this target?

main aim

policy measure

economic growth

deregulation

full employment

increasing the money supply

income equality

more progressive taxation

stable prices

decreasing interest rates