Economics HL
IB Questions
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Question 1 of 10
Explain how contractionary monetary policy can be used to reduce inflationary pressures in an economy.
Evaluate the use of monetary policy compared to supply-side policies in achieving price stability and economic stability.
Question 2 of 10
Explain using diagrams how a decrease in global oil prices can lead to both short-term and long-term effects on a country's aggregate supply.
Evaluate the effectiveness of fiscal policy measures in stimulating economic growth in a recession. Consider aspects such as time lags, multiplier effect, and public debt.
Question 3 of 10
Explain how a decrease in interest rates might influence aggregate demand (AD) using the concept of the Keynesian multiplier.
Discuss the effectiveness of fiscal policy compared to monetary policy in achieving economic growth in a recession.
Question 4 of 10
Explain how a government's implementation of fiscal policy can lead to a shift in the aggregate demand curve.
Evaluate the effectiveness of fiscal policy in stabilizing the economy during periods of high unemployment.
Question 5 of 10
Explain how an increase in interest rates could lead to a decrease in aggregate demand in an economy.
Evaluate the impact of a prolonged decrease in aggregate demand on an economy’s macroeconomic indicators such as GDP, unemployment, and inflation.
Question 6 of 10
Explain the impact of technology advancements in renewable energy and government investment in human capital on the potential output of an economy.
Evaluate the effectiveness of market-based supply-side policies in boosting economic growth. Consider policies such as deregulation, tax incentives, and labor market reforms.