Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

(a)[3]

Explain the meaning of a recession.

(b)

According to the article, ‘higher tax rates do not work’.

  • What is meant by this statement in the article? [3]
  • Does the article provide enough evidence to support this statement? [6]
(c)[8]

Discuss why the actions of the central banks mentioned in the article might have been expected to lessen the recession.

Worked solution & mark scheme

This 11-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A recession can be explained in terms of a fall in output, a fall in GDP, a rise in unemployment, a fall in spending, a fall in investment. (A formal definition is not needed to gain 3 marks.)” …

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI