Economics 9708/43 Oct Nov 2016 | Cambridge AS Level Past Papers With Mark Scheme

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1. Explain how an increase in interest rates can strengthen a country’s currency, using Turkey and South Africa as examples.

2. Differentiate between monetary policy and fiscal policy, providing two examples of fiscal policy measures.

3. Use the data in Table 1 to analyze the relationship between high interest rates, inflation, and GDP growth, assessing their macroeconomic impacts.

4. Evaluate the extent to which higher interest rates improve macroeconomic performance, considering inflation control and currency stability.

5. Discuss whether the price mechanism is the most effective method for allocating resources to maximize welfare.

6. Compare characteristics, pricing, and output differences between perfect and monopolistic competition, and assess the conditions under which monopoly prices are higher and output is lower.