The US has a largely market-based economic system. In 2017, US life expectancy dropped for the third successive year. Even though the US has a high GDP per head, income inequality is also high. The poor gained from the US’s low and stable inflation rate. Government supply-side policy measures helped to ease inflationary pressure.
(a)[2]
Identify two measures a government could use to reduce income inequality.
(b)[4]
Explain two advantages that are associated with a market economic system.
(c)[6]
Analyse the reasons why life expectancy may decrease.
(d)[8]
Discuss whether or not supply-side policy measures are able to reduce inflation.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Progressive taxation” …