Policy trade-offs
What Policy trade-offs means in Economics A-Level, as defined for AQA.
Definitions of Policy trade-offs
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Policy trade-offs in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Conflicts that may arise, at least in the short run, when attempting to achieve macroeconomic objectives, so that success in one area can cause deterioration in another.
The weighing of competing economic objectives, such as economic growth versus environmental protection, based on underlying values.
Short-run conflicts caused by demand-side policies, which force policymakers to prioritise objectives.
Topics that use Policy trade-offs
- Economic methodology (AQA A-Level)
- Possible conflicts between macroeconomic policy objectives (AQA A-Level)
- The objectives of government economic policy (AQA A-Level)
Related terms
- Ceteris paribus
- Cyclical unemployment
- Demand-side policies
- Economic growth
- Economic harmony
- Economic modelling
- Inflation expectations
- Inflationary pressure
Using Policy trade-offs in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge