Specification point 2.6.4 · Theme 2

Conflicts and trade-offs between objectives and policies

Macroeconomic objectives and policies · The UK economy – performance and policies

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Long-form evaluation and discussion

A-level Paper 2, June 2025, Q7EssayEvaluate

Optional25 marks

ContextIn 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.”

Evaluate the possible conflicts between macroeconomic objectives when seeking to control inflation.

2.6.4 · Conflicts and trade-offs between objectives and policies 2.1.2 · Inflation 2.6.2 · Demand-side policies 4.5.4 · Macroeconomic policies in a global context

Conflicts and trade-offs between objectives and policies revision notes Inflation revision notes Demand-side policies revision notes Macroeconomic policies in a global context revision notes

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AS Paper 2, June 2024, Q6(f)EssayEvaluate

Optional20 marks

Case study · UK monetary policy since the Global Financial Crisis of 2008

Evaluate whether expansionary demand-side policies lead to conflicts between macroeconomic objectives.

2.6.4 · Conflicts and trade-offs between objectives and policies 2.6.2 · Demand-side policies

Conflicts and trade-offs between objectives and policies revision notes Demand-side policies revision notes

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A-level Paper 2, November 2021, Q8EssayEvaluate

Optional25 marks

ContextIt has been estimated that if climate change led to the world’s temperature rising 2.5°C compared to the temperature in 2010, then global GDP per capita would be 15% lower by 2100. If temperatures rise by 4 °C compared to the temperature in 2010, then by 2100 global GDP per capita would decline by more than 30%.

Evaluate the potential trade-offs between environmental protection and other macroeconomic objectives.

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2.6.4 · Conflicts and trade-offs between objectives and policies

Conflicts and trade-offs between objectives and policies revision notes

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AS Paper 2, November 2020, Q6(g)EssayEvaluate

Optional20 marks

Case study · UK government budget and household consumption

Evaluate the likely macroeconomic effects of the UK government pursuing a policy of reducing its budget deficit.

2.6.2 · Demand-side policies 2.6.4 · Conflicts and trade-offs between objectives and policies

Demand-side policies revision notes Conflicts and trade-offs between objectives and policies revision notes