People often talk as if governments can easily control economic outcomes. Content removed due to copyright restrictions. High-income countries decided to focus on economic growth realising that it was essential to generate revenues and taxes needed to pay for costly investments, for example, the storage of renewable energy, required to reduce the use of fossil fuels. Sources: Irwin Stelzer, The Sunday Times, 29 January 2023 Ray Bourne, The Times, 9 February 2023 Assess whether the article provides sufficient evidence to justify its conclusion that the intervention of governments has little effect on economic outcomes.

Economics

IGCSE&ALevel

CAIE

Exam No：9708_s25_qp_41 Year：2025 Question No：1(d)

Answer:

Knowledge points:

10.3.1.1 fiscal policy including Laffer curve analysis

10.3.1.2 monetary policy

10.3.1.3 supply-side policy including market-based and interventionist policies

10.3.1.4 exchange rate policy

10.3.1.5 international trade policy

10.3.2 problems and conflicts arising from the outcome of these policies

10.3.3 existence of government failure in macroeconomic policies

5.1.1 use of government policy to achieve macroeconomic objectives: price stability, low unemployment, economic growth (policy conflicts and trade-offs are not required)

Answer:

Knowledge points:

Solution:

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