Government and the macroeconomy — IGCSE Economics (0987) questions by topic
Macroeconomy questions in IGCSE Economics range from single-mark multiple-choice identification through to 30-mark analysis of fiscal and monetary policy: budget deficits, employment effects, and the impact of a pandemic-style shutdown on aggregate demand. Expect identify and calculate to test recall and arithmetic, while explain, discuss and analyse push you toward reasoned chains of cause and effect rather than one-line answers.
This page collects 21 real questions from 2025 papers, worth anywhere from 1 to 30 marks. For discussion questions especially, draft a full response and submit it for instant marking, so you can see exactly where the mark scheme rewards developed analysis over a listed point.
May–June 2025, Paper 11
In 2020, to prevent the spread of a pandemic, many governments temporarily closed restaurants and cafés. What would be a macroeconomic impact of such a policy? A Demand for food…
Answer this question and get it marked →What is a macroeconomic aim of a government? A high external costs B high sales tax C low unemployment D low wages
Answer this question and get it marked →What is a principle of taxation? A equality between social cost and social benefit B fairness between taxpayers C profit maximisation by firms D tax revenue maximisation
Answer this question and get it marked →Monetary policy often involves a change in which variables? A government expenditure or taxes B interest rates or the money supply C labour market or trade union laws D tariffs or…
Answer this question and get it marked →Which supply-side policy measure is most likely to enable a government to achieve its aim of full employment? A decreasing government spending on school buildings B decreasing the…
Answer this question and get it marked →Which policy decision is most likely to cause economic growth? A an increase in corporation tax rates B an increase in interest rates C an increase in the amount workers can earn…
Answer this question and get it marked →A government uses the labour force survey method to calculate unemployment. What is required under this method for a person to be classified as unemployed? eligible for…
Answer this question and get it marked →What is most likely to rise when the level of employment falls in a high-income economy? A consumer confidence B government expenditure on state benefits C government revenue from…
Answer this question and get it marked →A Consumer Prices Index (CPI) consists of four items. The table shows the percentage price change for each item over a period of a year and the weight of each item. Which price…
Answer this question and get it marked →May–June 2025, Paper 12
Many central banks around the world decreased interest rates during a recession caused by a pandemic. What was the most likely macroeconomic aim of this policy? A economic growth…
Answer this question and get it marked →The diagram shows the percentage of income taken by a tax at different levels of income. The line labelled 'tax' slopes downwards: as income increases, the percentage paid in tax…
Answer this question and get it marked →What is not a likely consequence of a rise in the budget deficit in a year? A a rise in government borrowing B a rise in the level of exports C a rise in the national debt D a…
Answer this question and get it marked →When a government aims to encourage economic growth, it may adopt supply-side policies. Which policy is a supply-side policy? A increasing the money supply B lowering interest…
Answer this question and get it marked →An economy that is fully employed is forecast to have an increase in total demand. What is most likely to increase? A the rate of absolute poverty B the government budget deficit…
Answer this question and get it marked →A government conducted a labour force survey. It only included people of working age in the survey. The results are shown in the table. number of people --- --- of working age 10…
Answer this question and get it marked →A school leaver is unable to find a job immediately after completing their education. Which type of unemployment is this? A cyclical B frictional C regional D structural
Answer this question and get it marked →Which changes are likely to lead to the biggest increase in inflation in country X? demand for goods and services in country X supply of goods and services in country X --- ---…
Answer this question and get it marked →May–June 2025, Paper 21
Calculate the value of Gabon's oil production as a percentage of Gabon's GDP. [1]
Answer this question and get it marked →Identify two macroeconomic aims of government that may conflict. [2]
Answer this question and get it marked →May–June 2025, Paper 22
Calculate St. Kitts and Nevis's government budget deficit in 2022. [1]
Answer this question and get it marked →Identify two types of unemployment. [2]
Answer this question and get it marked →