Dear Econs C2 students,

I want to pose a question to all of you. Suppose an essay question is worded as follows:

Explain how fiscal and monetary policy can be used to influence national income. (12 marks)

By now, all of you should have a clear idea how to structure your answer to the above question. Now, suppose the wording of the question is altered slightly to:

Explain how fiscal and monetary policy can be used to influence the circular flow of income. (12 marks)

How many of you will basically give the same answer for the second question as you would have given for the first one? For your information, the second question actually came out for the A level H1 Nov 2007 exam.

Interested students may discuss with their tutors how a simple alteration may lead to a slightly different essay focus and how important it is to answer the question as it is worded, rather than giving memorized answers. For my classes, it of course will be complusory to discuss this during tutorials.

Regards,
Mr Tan