Eduqas · Macroeconomics · Macroeconomic objectives and policy

Eduqas Economics past paper questions: Macroeconomic objectives and policy

Every Eduqas question on Macroeconomic objectives and policy from 2017 to 2025: 5 essays, 28 data response questions and 12 multiple choice questions. It covers Measuring economic performance, International trade and exchange rates, The financial sector, Aggregate demand and Public finances and the role of the state. Each question links to its paper, mark scheme and examiner report.

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SubtopicsMeasuring economic performance 13International trade and exchange rates 10The financial sector 7Aggregate demand 7Public finances and the role of the state 4Economic growth and the economic cycle 3Government intervention in markets 3Costs, revenues and profit 2

Essay questions on macroeconomic objectives and policy

A-level Component 3, June 2025, Q4.2OptionalDiscuss20 marks

Discuss whether a reversal of quantitative easing could be effective in bringing inflation down to its target level.

Question paper p.3 Mark scheme p.21 Examiner report p.12 Open in the tool Practise the AD/AS diagram

A-level Component 3, June 2022, Q4(a)OptionalExplain10 marks

Case study: Sajid Javid: "Austerity is over" (September 2019)

Explain why it may be difficult for governments to achieve their macroeconomic policy objectives at the same time.

Question paper p.3 Mark scheme p.14 Examiner report p.10 Open in the tool

A-level Component 3, June 2022, Q4(b)OptionalDiscuss20 marks

Case study: Sajid Javid: "Austerity is over" (September 2019)

Discuss the extent to which the use of expansionary fiscal policy is appropriate during economic downturns.

Question paper p.3 Mark scheme p.16 Examiner report p.10 Open in the tool Practise the AD/AS diagram Practise the multiplier diagram

A-level Component 3, October 2021, Q3(a)OptionalExplain10 marks

Case study: PHILLIPS CURVE MAY BE BROKEN FOR GOOD – THE ECONOMIST

Explain, using a diagram or diagrams, why some economists argue that the long run Phillips curve is vertical but that the short run Phillips curve is not.

Question paper p.3 Mark scheme p.15 Open in the tool Draw it: Phillips curve diagram

A-level Component 3, October 2021, Q3(b)OptionalEvaluate20 marks

Case study: PHILLIPS CURVE MAY BE BROKEN FOR GOOD – THE ECONOMIST

Evaluate the policies that a government could use to shift the long run Phillips curve to the left.

Question paper p.3 Mark scheme p.18 Open in the tool Practise the Phillips curve diagram

Data response questions on macroeconomic objectives and policy

A-level Component 2, June 2025, Q2.216 marks

(i) Using the data and an AD/AS diagram, explain two reasons why inflation rose in Pakistan (Figure 2). (ii) Using the data, discuss how effective the increase in interest rates is likely to have been in returning Pakistan's inflation to target.

Question paper p.8 Mark scheme p.18 Examiner report p.10 Open in the tool Draw it: AD/AS diagram

AS Component 1, June 2025, Q5(b)9 marks

To what extent will the budget initiatives help the UK close the productivity gap shown in Figure 3?

Question paper p.11 Mark scheme p.14 Open in the tool

AS Component 2, June 2025, Q1(b)13 marks

Case study: Housing problems?

(i) Using Extract C, calculate the difference between the annual interest payments on a house priced at £300 000 for a buyer with a 5% deposit and a buyer with a 40% deposit. Assume that the total sum borrowed remains the same over the year. (ii) Evaluate whether interest rates are the most significant factor that determines the purchase price of houses.

Question paper p.3 Mark scheme p.6 Open in the tool Practise the supply and demand diagram

AS Component 2, June 2025, Q2(d)Evaluate9 marks

Case study: History to be repeated?

Evaluate whether expansionary fiscal policy is an effective method to achieve all government macro-economic policy objectives.

Question paper p.5 Mark scheme p.22 Open in the tool Practise the AD/AS diagram

A-level Component 1, June 2024, Q248 marks

Using the data, discuss whether a rise in interest rates decided by the Monetary Policy Committee of the Bank of England will bring down inflation to its target level.

Question paper p.24 Mark scheme p.9 Examiner report p.7 Open in the tool Practise the AD/AS diagram

A-level Component 1, June 2024, Q269 marks

Using a supply and demand diagram(s), discuss whether the data suggests that copper prices are more likely to rise or fall in the future.

Question paper p.28 Mark scheme p.13 Open in the tool Draw it: supply and demand diagram

AS Component 2, June 2024, Q2(d)9 marks

Case study: Corbynomics

Using the data from Table 1, discuss whether the proposed changes to UK tax rates are a good way to raise government revenue.

Question paper p.5 Mark scheme p.29 Examiner report p.11 Open in the tool

AS Component 2, June 2023, Q2(d)7 marks

Case study: Woes of Argentina

Using the data, consider whether Macri was right to cut government spending in order to improve the budget/fiscal deficit.

Question paper p.7 Mark scheme p.24 Examiner report p.11 Open in the tool

A-level Component 1, June 2022, Q258 marks

Using economic theory and the information above, discuss the relationship between base interest rates and economic growth in Azerbaijan.

Question paper p.22 Mark scheme p.12 Examiner report p.4 Open in the tool Practise the AD/AS diagram

A-level Component 2, June 2022, Q1(a)6 marks

Case study: The only way is up?

Using a revenue and costs diagram and with reference to the data, outline why Bovis Homes' profits rose in 2018.

Question paper p.6 Mark scheme p.4 Examiner report p.6 Open in the tool Draw it: monopoly diagram

A-level Component 2, June 2022, Q1(c)9 marks

Case study: The only way is up?

With reference to the data and using a diagram, discuss whether the Government should introduce maximum rents in the UK rental market.

Question paper p.6 Mark scheme p.7 Examiner report p.6 Open in the tool Draw it: maximum price diagram

A-level Component 2, June 2022, Q1(d)8 marks

Case study: The only way is up?

Based on the information available in the data (written in March 2019), discuss whether, at that time, house prices were more likely to rise than fall.

Question paper p.6 Mark scheme p.9 Examiner report p.6 Open in the tool

A-level Component 2, June 2022, Q1(e)Explain11 marks

Case study: The only way is up?

With reference to the data, explain how the Bank of England's QE programme affects households and discuss the extent to which it has been beneficial for them.

Question paper p.6 Mark scheme p.11 Examiner report p.6 Open in the tool

A-level Component 2, October 2020, Q2(d)9 marks

Case study: Turkey in economic turmoil

President Erdogan's view was that high interest rates cause inflation rather than reduce it. Using diagrams, discuss whether high interest rates are more likely to reduce inflation than to increase it.

Question paper p.8 Mark scheme p.18 Examiner report p.6 Open in the tool Draw it: AD/AS diagram

AS Component 1, October 2020, Q3(a)Calculate2 marks

Calculate the percentage rise in actual productivity between 2005 and 2017.

Question paper p.4 Mark scheme p.6 Examiner report p.3 Open in the tool

AS Component 1, October 2020, Q3(b)Identify2 marks

Identify two possible causes of the low productivity growth in the UK from 2011 to 2017.

Question paper p.4 Mark scheme p.6 Examiner report p.3 Open in the tool

AS Component 1, October 2020, Q3(c)10 marks

To what extent can supply-side policies bring about productivity growth in the UK economy? Refer to the data in your answer.

Question paper p.5 Mark scheme p.7 Examiner report p.3 Open in the tool Practise the AD/AS diagram

AS Component 2, October 2020, Q2(b)10 marks

Case study: UK growth helped by World Cup and warm weather

To what extent do you agree with the view that the Bank of England "does not have the tools to bring about lasting change" in productivity levels in the UK economy?

Question paper p.7 Mark scheme p.17 Examiner report p.6 Open in the tool

AS Component 2, October 2020, Q2(d)Evaluate8 marks

Case study: UK growth helped by World Cup and warm weather

Evaluate the view that the Bank of England should have its inflation target increased to 4 %-5 %.

Question paper p.7 Mark scheme p.20 Examiner report p.6 Open in the tool Practise the AD/AS diagram

A-level Component 1, June 2019, Q246 marks

Using the data assess the extent to which first-time buyers are likely to benefit from the removal of stamp duty on properties up to the value of £300 000.

Question paper p.22 Mark scheme p.8 Examiner report p.4 Open in the tool

AS Component 2, June 2018, Q2(a)4 marks

Case study: HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

Using a supply and demand diagram, explain why a higher oil price and a weaker pound could cause the price of a product to rise.

Question paper p.5 Mark scheme p.12 Open in the tool Draw it: supply and demand diagram

Case study: HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

Using an appropriate diagram, outline possible causes of the change in the value of the pound at the start of Friday the 24th June (Figure 1).

Question paper p.5 Mark scheme p.14 Open in the tool

AS Component 2, June 2018, Q2(d)8 marks

Case study: HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

To what extent will "a fall in the value of the pound" (line 10) benefit UK firms?

Question paper p.5 Mark scheme p.15 Open in the tool

AS Component 2, June 2018, Q2(e)10 marks

Case study: HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

Using AD/AS diagrams and with reference to the data, discuss whether the Bank of England will need to increase interest rates to prevent inflation from rising above its target level.

Question paper p.5 Mark scheme p.17 Open in the tool Draw it: AD/AS diagram

A-level Component 1, June 2017, Q268 marks

With reference to the quantity theory of money and the above data, assess the possible inflationary effects on the UK economy of the changes in the rate of growth of the money supply shown.

Question paper p.17 Mark scheme p.10 Examiner report p.5 Open in the tool

Case study: Up or down? The price of oil just can't win.

Using a diagram, explain how the oil shock in the early 1970s might have caused the Phillips curve trade-off to become significantly less favourable.

Question paper p.4 Mark scheme p.6 Examiner report p.7 Open in the tool Draw it: Phillips curve diagram

A-level Component 2, June 2017, Q1(f)12 marks

Case study: Up or down? The price of oil just can't win.

Discuss whether it is right to suggest that "the European Central Bank and the Bank of Japan should continue expanding their programmes of quantitative easing". (Lines 55-56)

Question paper p.4 Mark scheme p.13 Examiner report p.8 Open in the tool Practise the AD/AS diagram

AS Component 1, June 2017, Q6Discuss10 marks

Using an AD/AS diagram explain why, in theory, an increase in interest rates to 0.75% 'would hit economic growth hard' and discuss whether it would be likely to do so given the situation outlined in the data.

Question paper p.10 Mark scheme p.14 Examiner report p.4 Open in the tool

Multiple choice questions

A-level Component 1, June 2025, Q4
If a central bank engages in a policy of reversing quantitative easing, also known as quantitative tightening, this is most likely to:
A-level Component 1, June 2024, Q1
Which one of the following shows a relationship between income tax rates and income tax revenue?
A-level Component 1, June 2023, Q12
The table below has information on the level of UK government debt (financial years ending March). 2011: £1214.5bn (74.9% of GDP). 2012: £1349.7bn (80.9%). 2013: £1425.6bn (82.6%). 2014: £1522.5bn (84.3%). 2015: £1604.1bn (85.7%). 2016…
A-level Component 1, June 2023, Q13
The chart in the question paper shows consumer spending in Britain between March and June 2020, compared with the January-February average (%), for staple, delayable, work-related and social spending and the average. Which of the following…
A-level Component 1, June 2022, Q12
The chart in the question paper shows average nominal and real mortgage interest rates on variable mortgages between 1995 and 2016. The real rate is after adjusting for CPI inflation (excluding housing costs). It can be concluded that:
A-level Component 1, October 2020, Q18
A decision to reverse QE (quantitative easing) would be most likely to reduce:
A-level Component 1, June 2019, Q8
The change in GDP in the UK in 2008, as shown in the chart of the UK GDP growth rate (2008 to 2016) in the question paper, is most likely the result of:
A-level Component 1, June 2018, Q12
An expansion of the Bank of England's quantitative easing programme would be most likely to lead directly to:
A-level Component 1, June 2018, Q18
The chart in the question paper shows the UK's fiscal/budget deficit as a percentage of GDP between 2009 and 2015. It can be concluded that over the period:
A-level Component 1, June 2017, Q6
As a result of an increase in the Bank of England's base rates, a firm's interest payments on its loans increase. What is the likely impact on its marginal and average cost?
A-level Component 1, June 2017, Q11
If the central bank reverses its policy of quantitative easing by selling government bonds to financial markets then the most likely economic effect will be to:
A-level Component 1, June 2017, Q14
Which one of the following do you generally associate with a prolonged period of deflation in an economy?

Question text is quoted from the question papers, © WJEC CBAC Ltd (Eduqas), 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.

Essay questions on macroeconomic objectives and policy

Data response questions on macroeconomic objectives and policy

Multiple choice questions

More Eduqas topics: Macroeconomics