IB Economics SL Internal Assessment Example

The student includes a relevant AD–AS diagram with appropriate axes and an attempted shift from AD1 to AD2.

The diagram is linked to the policy in the article and shows an understanding that higher spending should raise output and reduce cyclical unemployment.

The diagram contains a significant labelling inaccuracy because the horizontal curve is treated as LRAS even though it functions like Keynesian AS/SRAS.

The price-level change in the diagram does not match the student's written claim that there will be no inflation, so the diagram and explanation are not fully aligned.

The student uses a broad range of relevant economic terminology appropriately throughout the commentary.

The student integrates concepts such as expansionary fiscal policy, aggregate demand, recessionary gap, multiplier effect, cyclical unemployment, and opportunity cost into their explanation rather than listing them mechanically.

A few terms are used imprecisely, such as describing government capital spending as ‘injecting liquidity’.

The student's opening definition of expansionary fiscal policy is too broad for the policy actually discussed, since the commentary mainly focuses on higher government spending rather than also assuming tax cuts.