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 To keep unemployment low, one government used fiscal policy. Analyse how this policy can affect unemployment rates.

Economics
IGCSE&ALevel
CAIE
Exam No:9708_s25_qp_43 Year:2025 Question No:1(b)

Answer:



Knowledge points:

5.2.6 distinction between expansionary and contractionary fiscal policy
5.2.7 AD/AS analysis of the impact of expansionary and contractionary fiscal policy on the equilibrium level of national income and the level of real output, the price level and employment
9.3.7 policies to reduce unemployment and their effectiveness

Solution:

Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Android
Download
Google Play
Download