What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to links between macroeconomic problems. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 3 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on links between macroeconomic problems, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Treating the internal and external value of money as always moving together, ignoring capital flows.
- Explaining that depreciation causes inflation without naming the channel: imported, cost-push or demand-pull.
- Asserting that growth always causes inflation, without reference to the output gap.
- Forgetting that supply-side growth relieves the growth and inflation conflict rather than intensifying it.
- Treating the Phillips curve as a stable menu, which is the error the 1970s disproved.
- Drawing the expectations-augmented model without distinguishing the short-run curves from the vertical long-run curve.
- Saying the long-run curve is vertical without explaining why: unemployment returns to the natural rate once expectations catch up.
- Claiming supply-side policy shifts the short-run Phillips curve, when what it does is move the long-run curve by lowering the natural rate.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Links Between Macroeconomic Problems revision notes.