The case study examines Japan's post pandemic economic difficulties, the three arrows of Abenomics, the historic depreciation of the yen, and whether...
The case study question is cited only. See the worked answer for the full breakdown.
A Level Economics Macro Policies Questions
Every A Level H2 Economics exam question on macro policies from the last ten years, linked to the worked answers, with the model essays on the same topic. Fiscal, monetary, exchange rate and supply side policy.
Past year exam questionsMacro Policies in the A Level papers
Explain how an increase in the rate of income tax might affect actual and potential economic growth.
Explain how a depreciation in a country's exchange rate might lead to demand-pull inflation and to cost-push inflation.
The case study looks at changing economic relationships in the Asia-Pacific Rim, including the appreciation of the Chinese yuan, the US and China...
The case study question is cited only. See the worked answer for the full breakdown.
Explain, with examples, why the impact on expenditure from a reduction in the rate of income tax depends on a good's income elasticity of demand.
Explain how an increase in government spending can cause changes in the components of the circular flow of income and in the national income.
Explain what might cause investment to increase in an economy.
Explain why measures of an economy's standard of living include but look beyond the material standard of living.
The case study examines the economic impact of an ageing population, including the old age dependency ratio, the effect of population decline on...
The case study question is cited only. See the worked answer for the full breakdown.
Explain how an appreciation of the exchange rate might affect aggregate demand and aggregate supply in an economy. [10]
Explain why expansionary fiscal policy designed to achieve economic growth or lower unemployment may lead to undesirable consequences. [10]
The case study examines the economic problems caused by the Australian drought and the COVID-19 pandemic, drawing on it to test demand and supply...
The case study question is cited only. See the worked answer for the full breakdown.
With the aid of diagrams, explain why an increase in GST and a fall in the incomes of many households are each expected to cause a fall in...
Explain how a fall in investment might lead to one type of unemployment while a rise in innovation-based investment might lead to a different type of...
Explain why a rise in interest rates is used as a macroeconomic policy tool to control inflation in some countries but not in Singapore.
Explain the benefits and costs of globalisation to Singapore.
Explain how a reduction in the rate of income taxes paid by workers and firms might have consequences on an economy's aggregate demand and aggregate...
Explain how a modest and gradual appreciation in Singapore's exchange rate might affect Singapore's rate of inflation and its current account balance.
Explain one potential demand-side cause and one potential supply-side cause of real GDP growth.
The case study looks at the US and China trade war and its effects on a small open economy, testing the current account, the effect of a shrinking...
The case study question is cited only. See the worked answer for the full breakdown.
Explain how government expenditure on large-scale infrastructure can contribute to a country's economic growth.
Explain the likely economic consequences of these population changes for Singapore's economy in the future.
Explain a possible demand side reason and a possible supply side reason for a rise in the rate of inflation. [10]
Explain what is meant by inclusive growth and sustainable growth. [10]
The case study looks at Bangladesh's pursuit of inclusive economic growth, drawing on exchange rate movements, the Gini coefficient, the nature of...
The case study question is cited only. See the worked answer for the full breakdown.
Assess whether an increase in government expenditure, such as that announced in the 2016 budget, is likely to have a significant impact on...
Explain why Singapore chooses exchange rates rather than interest rates as its main tool of monetary policy.
The case study examines China's economy, drawing on it to test how interest rates affect aggregate demand, the trend in inflation, growth spillovers...
The case study question is cited only. See the worked answer for the full breakdown.
Explain how firms in Singapore will be affected by constraints, such as having a small domestic market and a lack of resources.
High rates of unemployment remain a major issue in many economies of the world. An understanding of various causes of unemployment is needed in order...
Explain the link between the standard of living, the cost of living and the macroeconomic performance of a country.
Explain the internal and external factors that are likely to have contributed to this slowdown in the economic growth rate.
The case study contrasts inflation in Brazil and Japan, drawing on it to test the incidence of a sales tax, the causes of inflation through aggregate...
The case study question is cited only. See the worked answer for the full breakdown.
Explain why a government intervenes in the provision of healthcare.
Assess the likely impact of the budget surplus on the Singapore economy, both domestically and internationally.
Explain why macroeconomic policy decision-making is made more difficult by possible conflicts between government objectives.
Explain how an appreciation of a country's currency might affect the current account of its balance of payments.
Model essaysWorked essays on macro policies
Explain the key macroeconomic objectives of the Singapore government.
Assess the effectiveness of Singapore's existing macroeconomic policies in reducing unemployment.
Discuss whether efforts to curb inflation may create economic trade-offs or problems for Singapore.
Evaluate the overall impact of a currency depreciation on an economy's performance.
Explain one demand-side and one supply-side factor that may lead to a depreciation of a country's currency.
Discuss whether the implementation of policies for price stability will always lead to trade-offs in Singapore's economic performance.
Assess whether increasing the retirement age is the most effective way to ensure fiscal sustainability in an ageing economy.
Explain why governments aim to achieve fiscal sustainability.
Discuss the effectiveness of different macroeconomic policies in helping Singapore achieve a healthy balance of trade.
Evaluate whether focusing on exchange rate policy would be more effective than discretionary fiscal intervention in helping Singapore recover from the COVID-19-induced recession.
Explain the economic impact of the COVID-19 pandemic and how discretionary fiscal policy can help support recovery during a recession.
Explain the impact of fiscal imbalances on an economy.
Assess the view that providing subsidies for education and retraining is the most effective way to promote inclusive growth in an economy.
Discuss whether keeping interest rates low, on balance, will allow the US government to achieve price stability.
Explain how lowering interest rates can help reduce unemployment in the United States.
Discuss whether supply-side policy is the most appropriate policy to be used in addressing stagflation.
Discuss whether monetary policy by itself is sufficient to tackle COVID-19-related unemployment in Singapore.
Explain why using a mix of economic policies is essential for the Singapore government to meet its various macroeconomic objectives concurrently.
Explain why low inflation, full employment, and sustainable growth are commonly pursued as key macroeconomic policy objectives by governments.
Given that producers of price elastic goods may see higher revenues, should oil-exporting nations respond to deflation through fiscal stimulus or by addressing its underlying causes?
Discuss whether supply-side policies are effective in increasing the standard of living.
Evaluate whether market-based supply-side policies are the most effective approach to promoting economic growth during periods of economic uncertainty.
Evaluate how effective an exchange rate depreciation is in enhancing a country's standard of living.
In light of Japan's ageing population, should the government place greater emphasis on tackling deflation or on cutting its fiscal deficit?
With the aid of a diagram, explain one demand and one supply factor that would cause a depreciation of a country's currency.
Discuss the most appropriate policy measures that should be taken to reduce youth unemployment in China.
Discuss the extent to which supply-side policies will lead to an improvement in standard of living.
Discuss whether increasing the retirement age in a country with an ageing population is the best policy measure to attain fiscal sustainability.
Discuss whether the UK should prioritise reducing inflation over promoting economic growth and whether increasing interest rates is an appropriate policy to deal with stagflation in the UK.
Attempt them, then check against the model.
The worked answers to the past year questions are in the TYS Answers hub, and each model essay shows how a top answer is built. Every ETG student also gets the AI coach that plans every essay and case study with you. Bring your hardest question to a trial lesson.
Work the questions alongside the notes that teach the tools: Macro Policies notes, the Macro Policies model essays, and the full notes and glossary.
Questions students ask
Are these the official A Level Economics answers for the macro policies questions?
No. SEAB sets and marks the A Level papers. The past year questions are cited so you can find them, and the worked answers and model essays are Mr Eugene Toh's own, author of the H1 and H2 A Level Economics TYS answer keys published by SAP and sold at Popular.
Where are the answers to these questions?
Each past year question links to its worked answer in the TYS Answers hub, and each model essay links to a full worked essay. Every ETG student also gets the AI coach that plans every essay and case study of the last ten years.
Can I get A Level Economics questions sorted by topic?
Yes. This page collects the exam questions and model essays on macro policies in one place. Use the other topic pages in the question bank for the rest of the syllabus.
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