What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to government macroeconomic policy objectives. 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 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on government macroeconomic policy objectives, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Every government objective is part of AS 5.1. Incorrect. The AS topic specifies only price stability, low unemployment and economic growth. Balance-of-payments stability appears elsewhere in the AS syllabus. Development, sustainability and redistribution are included in A Level Topic 10.1, not AS Topic 5.1.
- Full employment means zero unemployment. Incorrect. Some unemployment can exist because workers are searching, industries are changing or work is seasonal.
- Economic growth means nominal GDP increased. Incorrect. Growth must be measured using real output.
- All unemployment is solved by increasing AD. Incorrect. Expansionary demand policy is most directly relevant to cyclical unemployment. Structural and technological unemployment may require supply-side measures.
- Supply-side policy only affects growth. Incorrect. By increasing productivity or capacity; it may also reduce cost pressure and improve labour-market matching.
- The policy instrument is the objective. Incorrect. “Higher interest rates” is not an objective; it may be a monetary-policy action used to pursue price stability. ---
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Government Macroeconomic Policy Objectives revision notes.