Ib Economics — Macroeconomics Paper 1 [new]

(a) Explain how the central bank might use interest rates to close a deflationary (recessionary) gap. [10 marks] (b) Evaluate the effectiveness of using interest rate cuts to restore full employment. [15 marks]

While Paper 1 covers the entire syllabus (Micro, Macro, Global), this guide focuses exclusively on the Macroeconomic strand. You control which question you answer, so mastering Macro gives you a reliable safety net. ib economics macroeconomics paper 1