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Question 18N.1.HL.TZ0.b

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Date November 2018 Marks available [Maximum mark: 15] Reference code 18N.1.HL.TZ0.b
Level HL Paper 1 Time zone TZ0
Command term Discuss Question number b Adapted from N/A
b.
[Maximum mark: 15]
18N.1.HL.TZ0.b

Discuss the effectiveness of supply-side policies in reducing unemployment.

[15]

Markscheme

Answers may include:

  • definitions of supply-side policies, unemployment
  • diagram(s) to show how supply-side polices may have a short-term impact on AD, but more importantly will increase LRAS and/or how supply-side policies will affect the market for labour
  • explanation of how supply-side policies (market-based and interventionist) could reduce different types of unemployment
  • example(s) of where supply-side polices have been introduced to tackle unemployment
  • synthesis or evaluation (discuss).

Discussion may include: consideration of the disadvantages of supply-side policies (political opposition, opportunity cost for the government budget, time lag, increased inequality in income distribution) in reducing unemployment, consideration of alternative (demand-side) policies.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.

Syllabus sections