2 marksMonetary Theory and Policy
CAPE Economics Unit 2 · 2018 · Paper 2 · Question 2(b)
State TWO limitations of monetary policy.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 2(a)Define the term 'frictional unemployment'.[2 marks]
- 2(c)(i)Calculate the labour force participation rate (to one decimal place) in Year 1 and Year 2.[6 marks]
- 2(c)(ii)Calculate the unemployment rate (to one decimal place) for Year 1 and Year 2.[3 marks]
- 2(c)(iii)Discuss how it is possible that the number of persons employed increased yet the unemployment rate also increased rather than decreased.[4 marks]
- 2(d)Analyse how the money market responds to BOTH a shortage of money and a surplus of money.[8 marks]
More practice: the rest of this paper · more Monetary Theory and Policy questions · all CAPE Economics Unit 2 past papers