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Question 20N.3.HL.TZ0.c

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Date November 2020 Marks available [Maximum mark: 2] Reference code 20N.3.HL.TZ0.c
Level HL Paper 3 Time zone TZ0
Command term Outline Question number c Adapted from N/A
c.
[Maximum mark: 2]
20N.3.HL.TZ0.c

Table 1 provides information required for the calculation of a consumer price index (CPI). It shows a typical basket of goods purchased by the citizens of Country Alpha and the prices of these goods for two consecutive years. Assume 2015 is the base year, when the cost of the typical basket was $45.00.

Outline how monetary policy is used to lower the inflation rate in an economy.

[2]

Markscheme

Examiners report

Candidates were mostly able to explain contractionary monetary policy, although a small minority focused on expansion. For full marks, reference to consumer spending and/or investment spending was required, and this was not included by some candidates.

Syllabus sections