A-level Paper 2, June 2025The National and Global Economy
A-level Paper 2, June 2025, Q7
Evaluate the possible conflicts between macroeconomic objectives when seeking to control inflation.
EssayEvaluateOptional25 marks
Context
In January 2023 the UK prime minister, Rishi Sunak, promised to halve inflation by the end of the year. In July 2023 the Bank of England governor, Andrew Bailey, said: “It is crucial that we… return inflation to its 2% target and provide the environment of price stability in which the UK economy can thrive. This is the best contribution monetary policy can make to the prosperity of the United Kingdom.”