Conflicts Between Objectives and Policies — Edexcel Past Paper Questions

In January 2023 the UK prime minister, Rishi Sunak, promised to halve inflation by the end of the year. In July 2023 the Bank of England governor, Andrew Bailey, said: “It is crucial that we… return inflation to its 2% target and provide the environment of price stability in which the UK economy can thrive. This is the best contribution monetary policy can make to the prosperity of the United Kingdom.” Evaluate the possible conflicts between macroeconomic objectives when seeking to control inflation.

One of two options in Section C — candidates answered this or the other.

2.6.4 Conflicts Between Objectives · 2.1.2 Inflation

Evaluate whether expansionary demand-side policies lead to conflicts between macroeconomic objectives.

One of two options in Section B — candidates answered this or the other.

2.6.4 Conflicts Between Objectives · 2.6.2 Demand-Side Policies

It has been estimated that if climate change led to the world’s temperature rising 2.5 °C compared to the temperature in 2010, then global GDP per capita would be 15% lower by 2100. If temperatures rise by 4 °C compared to the temperature in 2010, then by 2100 global GDP per capita would decline by more than 30%. Evaluate the potential trade-offs between environmental protection and other macroeconomic objectives.

One of two options in Section C — candidates answered this or the other.

2.6.4 Conflicts Between Objectives · 2.5.4 The Impact of Economic Growth

With reference to Extract C, discuss the potential conflicts between macroeconomic objectives when the central bank attempts to control inflation.

2.6.4 Conflicts Between Objectives · 2.1.2 Inflation

Evaluate the potential conflicts between the objective of economic growth and two other UK macroeconomic objectives.

One of two options in Section B — candidates answered this or the other.

2.6.4 Conflicts Between Objectives