Economics 2281 · O Level · The macroeconomic aims of government
The macroeconomic aims of government — practice question
In 2023, the Chinese Government stated that it would target an economic growth rate of $5\%$ and a gradual rise in both exports and imports. It was anticipated that the main source of higher output would be an increase in household spending, although this could also bring about inflation. Another objective of the Chinese Government was to keep unemployment at about $5.5\%$. China has an ageing population and an ageing labour force.
(a)[2]
Identify two influences that affect household spending.
(b)[4]
Explain two benefits of employing older workers.
(c)[6]
Analyse how a rise in household spending could lead to inflation.
(d)[8]
Discuss whether a government should aim to increase imports.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Income” …