National and International Economy · 7136/2

AQA A-level Paper 2, June 2025

All 14 written questions from AQA A-level Paper 2 (June 2025), National and International Economy. Case studies: The value of the Norwegian krone and its effects on… and The emergence of BRICS+. Each question shows its marks and topic, with an examiner insight on 10, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report

Context 1

The value of the Norwegian krone and its effects on Norway’s economy

Extracts: Norway’s currency, the krone, has depreciated · Singapore’s managed exchange rate

Q3Explain9 marks
Extract B (lines 6–7) states: ‘Some analysts hope that, before long, the currency will start to appreciate which could help Norway reduce inflation.’
With the help of a suitable diagram, explain how an appreciation of the krone could help Norway reduce inflation.

TopicEconomic performanceInflation & deflationExchange rates

Examiner insight

What to cover
A stronger krone lowers import prices and reduces demand for exports, so inflation falls.
Diagram
AD/AS diagram.
Watch out
Explain the effect of lower import prices.
Question paper p.3Mark scheme p.7Examiner report p.4Open in the toolDraw it: AD/AS diagram
Q4Assess25 marks
Extract C (lines 1–2) states: ‘An economy that has seen considerable success by intervening in the foreign exchange market to manage its currency is Singapore.’
Using the data in the extracts and your knowledge of economics, assess the view that an economy is likely to perform better with a managed exchange rate rather than a freely floating exchange rate.

TopicThe international economyExchange rates

Examiner insight

What to cover
A managed rate gives stability and can control inflation.
Evaluation
A floating rate adjusts automatically and saves reserves. Judge using Singapore's data.
Watch out
Use the data in the extracts.
Question paper p.3Mark scheme p.9Examiner report p.4Open in the tool

Context 2

The emergence of BRICS+

Extracts: BRICS+ · A new world order?

Q7Explain9 marks
Extract E (lines 15–17) states: ‘In recent years, some of the BRICS+ countries, including China and India, have been responsible for large foreign direct investment (FDI) inflows into the G7.’
With the help of a suitable diagram, explain how increased inward foreign direct investment (FDI) can affect a country’s level of employment.

TopicThe international economyGlobalisationUnemployment

Examiner insight

What to cover
FDI raises investment and AD, and increases productive capacity, so employment rises.
Diagram
AD/AS diagram.
Watch out
Link FDI to employment clearly.
Question paper p.5Mark scheme p.12Examiner report p.5Open in the toolDraw it: AD/AS diagram
Q8Assess25 marks
Extract F (lines 1–2) states: ‘While some see the benefits of the emergence of the BRICS+ economies, others are more worried by their rapid economic growth.’
Using the data in the extracts and your knowledge of economics, assess the view that the continued rapid economic growth of the BRICS+ economies is likely to be damaging to the macroeconomic performance of G7 nations, such as the UK.

TopicThe international economyDevelopmentEconomic growth & cycleGlobalisation

Examiner insight

What to cover
Fast BRICS+ growth can increase competition and raise commodity prices for G7 nations.
Evaluation
It also raises demand for G7 exports. Judge using the data.
Watch out
Use the data in the extracts.
Question paper p.5Mark scheme p.14Examiner report p.5Open in the tool
Q9Essay 1Explain15 marks
Explain factors that may lead to an increase in a country’s national debt as a percentage of GDP.
Essay stimulus. By September 2024, the UK’s national debt had risen to approximately £2 776 billion, which was equivalent to over 100% of GDP. To pay for an increase in its spending, the government may have to increase taxes.

TopicFiscal policy and supply-side policiesFiscal policy & public finances

Examiner insight

What to cover
The debt ratio rises with budget deficits, slow growth, higher interest rates, or a fall in nominal GDP.
Watch out
Explain both the numerator and the denominator.
Question paper p.6Mark scheme p.16Examiner report p.5Open in the tool
Q10Essay 1Assess25 marks
Assess the view that raising direct taxes to finance an increase in government spending is better than raising indirect taxes.
Essay stimulus. By September 2024, the UK’s national debt had risen to approximately £2 776 billion, which was equivalent to over 100% of GDP. To pay for an increase in its spending, the government may have to increase taxes.

TopicFiscal policy and supply-side policiesFiscal policy & public finances

Examiner insight

What to cover
Direct taxes are progressive and less inflationary.
Evaluation
Indirect taxes are harder to avoid and may affect work incentives less. Judge by incentives, equity and revenue.
Watch out
Compare both taxes directly.
Question paper p.6Mark scheme p.17Examiner report p.6Open in the toolPractise the AD/AS diagram
Q11Essay 2Explain15 marks
Explain how supply-side policies can help to achieve a low, stable rate of inflation.
Essay stimulus. In 2023, the UK government allocated £5.9 billion for supply-side policies to boost long-term growth and competitiveness. One aim of supply-side policies is to achieve a lower, stable rate of inflation.

TopicFiscal policy and supply-side policiesSupply-side policiesInflation & deflation

Examiner insight

What to cover
Supply-side policies raise productivity and lower costs, so capacity grows and inflation stays low.
Diagram
LRAS shifting right.
Watch out
Explain the link to inflation.
Question paper p.6Mark scheme p.18Examiner report p.6Open in the toolPractise the AD/AS diagram
Q12Essay 2Evaluate25 marks
Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance.
Essay stimulus. In 2023, the UK government allocated £5.9 billion for supply-side policies to boost long-term growth and competitiveness. One aim of supply-side policies is to achieve a lower, stable rate of inflation.

TopicEconomic performanceInflation & deflationMacro objectives & conflicts

Examiner insight

What to cover
Low inflation helps stability, confidence and competitiveness.
Evaluation
Very low inflation risks deflation. Judge by level and cause.
Watch out
"Always" invites counter-examples.
Question paper p.6Mark scheme p.19Examiner report p.6Open in the toolPractise the AD/AS diagram
Q13Essay 3Assess15 marks
Explain the main limitations of using national income data to assess differences in living standards between countries.
Essay stimulus. Gross domestic product (GDP) is a widely used measure of economic activity, but it has several limitations when used as the sole indicator of living standards. Less economically developed countries (LEDCs) need to look at ways to not only boost their GDPs but also to develop their economies.

TopicMeasuring macroeconomic performanceGDP & national incomeLiving standards & wellbeing

Examiner insight

What to cover
Limits of national income data: inequality, the hidden economy, non-market activity, different prices, exchange rates, environment and quality of life.
Watch out
Explain each limitation.
Question paper p.7Mark scheme p.20Examiner report p.7Open in the tool
Q14Essay 3Assess25 marks
Assess the view that economic development in LEDCs is best achieved through interventionist strategies.
Essay stimulus. Gross domestic product (GDP) is a widely used measure of economic activity, but it has several limitations when used as the sole indicator of living standards. Less economically developed countries (LEDCs) need to look at ways to not only boost their GDPs but also to develop their economies.

TopicThe international economyDevelopment

Examiner insight

What to cover
Interventionist strategies: infrastructure, education, health, industrial policy.
Evaluation
Compare with market-based strategies. Judge by country, governance and time.
Watch out
Compare both approaches.
Question paper p.7Mark scheme p.21Examiner report p.7Open in the tool

Question text is quoted from the question papers, © AQA, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.