An increase in a government’s budget surplus will increase unemployment in the short run but it will make it easier to control a balance of payments deficit on the current account in the long run. Evaluate this statement.

Evaluate the effectiveness of using monetary policy to reduce the rate of inflation and how this policy may affect a government’s ability to achieve its other macroeconomic aims.

Assess the extent to which monetary policy can be used effectively to solve the problem of unemployment.

With the help of a diagram, assess the effectiveness of using fiscal policy to close a negative output gap in an economy.

With the help of a diagram, assess the effectiveness of government policies which might be used to reduce cost-push inflation.

In many countries increased government spending is regarded as a cause of economic growth. It is sensible, therefore, for a government to spend more to increase economic growth as it is good for its country. To what extent do you agree with this argument?

In 2022, many countries experienced a high rate of inflation caused by disruptions to the supply of goods and services arising from the Covid-19 pandemic and the conflict between Russia and Ukraine. In one country, the government cut taxes and the central bank raised interest rates. Evaluate the likely impact of these policies on that government’s ability to control inflation.

In periods of rising and persistent inflation, consumers and workers change their expectations of the future rate of inflation. Evaluate, with the help of a diagram(s), the consequences of these changes of expectations for fiscal policy.

Between 2010 and 2020, very low interest rates encouraged low-income countries to borrow money from foreign investors and governments to finance long-term economic growth. Evaluate this approach to promoting long-term economic growth.

Central banks can control the money supply. An increase in the money supply will cause inflation, therefore central banks can control inflation. Evaluate this statement.

With the help of a diagram, assess the effectiveness of government policies that might be used to reduce demand-pull inflation.

A country is experiencing stagflation, when there is a high rate of inflation at the same time as a negative output gap. With the help of a diagram, evaluate the effectiveness of using fiscal policy to solve this problem.

With the help of an injections and withdrawals graph, assess the impact of a decrease in interest rates on the level of employment in an economy.

A country with an open economy has falling demand for exports. Consider the view that monetary policy alone will solve this problem.

Evaluate how a country might increase its potential economic growth.

Economic growth can only occur when an economy is below full employment. Evaluate this statement.

With the help of a diagram, evaluate the effectiveness of using monetary policy to increase the rate of economic growth in a country.

A country imposes a tariff of 20% on imported goods and restricts the number of immigrants entering the country. Evaluate, with the aid of a diagram(s), the impact of these two policies on the rate of inflation in that country.

Evaluate whether an increase in a government’s budget deficit will always lead to economic growth.