Government and the Macroeconomy · 2 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 6% of your exam marks.
New emphasis in the 2027 syllabus; economic growth and recession are now a distinct topic, including causes and consequences of recession. Guidance based on specimen materials.
A government can use all of its policy toolkits to lift growth, and the right mix depends on whether the problem is too little demand or too little capacity.
In practice a government combines these. Demand-side policies are the quicker response to a recession; supply-side policies are the durable way to raise the economy's long-run rate of growth.