The US has a largely market-based economic system. US life expectancy declined in 2017, marking the third consecutive year of fall. Although GDP per head is high in the US, income inequality is also high. The poor have gained from the US’s low and stable inflation rate. The government’s supply-side policy measures were partly responsible for cutting inflationary pressure.
(a)[2]
Identify two methods a government could use to reduce income inequality.
(b)[4]
Explain two benefits of a market economic system.
(c)[6]
Analyse why life expectancy could fall.
(d)[8]
Discuss whether supply-side policy measures can reduce inflation or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Progressive taxation policy” …