Cambridge International (CAIE) · 5 Government macroeconomic intervention (AS) · 5.4 Supply-side policy

Cambridge International (CAIE) Economics past paper questions: Supply-side policy

Every Cambridge International (CAIE) question on Supply-side policy from 2023 to 2025: 3 essays, 1 data response question and 10 multiple choice questions. It covers 4.3 Aggregate demand and aggregate supply analysis, 4.6 Price stability, 3.2 Methods and effects of government intervention in markets, 5.2 Fiscal policy and 5.3 Monetary policy. Each question links to its paper, mark scheme and examiner report.

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Subtopics4.3 Aggregate demand and aggregate supply analysis 24.6 Price stability 13.2 Methods and effects of government intervention in markets 15.2 Fiscal policy 15.3 Monetary policy 1

Essay questions on supply-side policy

Data response questions on supply-side policy

Multiple choice questions

  1. AS Paper 1, November 2025, Q18

    A government reduces the benefits that it pays to unemployed workers to increase the incentive to work. Which types of macroeconomic policies are being used?

  2. AS Paper 1, June 2025, Q4

    A country increases its spending on education and training. It pays for this by reducing unemployment benefit payments and increasing taxes on imports of machinery. What is the likely effect of these changes?

  3. AS Paper 1, June 2025, Q24

    Which supply-side policy will encourage new entrepreneurs?

  4. AS Paper 1, March 2025, Q21

    A government cuts income tax. Why might this be seen as an example of a supply-side policy?

  5. AS Paper 1, March 2025, Q24

    A government decides to use supply-side policy to increase long-run aggregate supply (LRAS). What is the most likely reason why this policy tool will not lead to a fall in the price level?

  6. AS Paper 1, November 2024, Q21

    Which supply-side policy is likely to lower real output before raising it?

  7. AS Paper 1, March 2024, Q23

    What can be considered an expansionary supply-side policy?

  8. AS Paper 1, November 2023, Q26

    Which supply-side measure is most likely to produce short-run growth in a country’s aggregate supply?

  9. AS Paper 1, June 2023, Q29

    Supply-side policies can be used to correct cost-push inflation. Which policy would best achieve this aim in the long run?

  10. AS Paper 1, March 2023, Q26

    Under which current conditions will supply-side policy measures be most likely to achieve a country’s key macroeconomic goals?

More Cambridge International (CAIE) topics: 5 Government macroeconomic intervention (AS)

Government macroeconomic policy objectivesFiscal policyMonetary policy

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.