Economics 0455 · IGCSE · The macroeconomic aims of government
The macroeconomic aims of government — practice question
In 2023, the Chinese Government stated that it wanted economic growth of 5% and a gradual rise in both exports and imports. It was anticipated that stronger output would come mainly from higher household spending, although this might also create inflation. A further objective of the Chinese Government was to hold unemployment at about 5.5%. China has an ageing population and an ageing labour force.
(a)[2]
Identify two factors that influence household spending.
(b)[4]
Explain two benefits of employing older workers.
(c)[6]
Analyse how higher household spending may lead to inflation.
(d)[8]
Discuss whether or not a government ought to target an increase in imports.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Household income” …