AQA · Macroeconomics · Economic performance

AQA Economics past paper questions: Economic performance

Every AQA question on Economic performance from 2016 to 2025: 20 essays, 63 data response questions and 78 multiple choice questions. It covers Economic growth & cycle, Unemployment, Inflation & deflation, Macro objectives & conflicts and Monetary policy & interest rates. Each question links to its paper, mark scheme and examiner report.

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SubtopicsEconomic growth & cycle 61Unemployment 57Inflation & deflation 55Macro objectives & conflicts 23Monetary policy & interest rates 8PPB / PPC 6Fiscal policy & public finances 6Trade & comparative advantage 5Aggregate supply 4Technological change 4Aggregate demand 4Exchange rates 3GDP & national income 3Supply-side policies 3Inequality & poverty 2Labour demand & supply 2Development 2Money & banking 1Living standards & wellbeing 1Balance of payments 1Protectionism & trading blocs 1Price indices & inflation measurement 1

Essay questions on economic performance

A-level Paper 2, November 2020, Q10To what extent25 marks
To what extent do you agree that reducing the budget deficit is more important to the UK’s macroeconomic performance than reducing the current account deficit on its balance of payments? Justify your answer.

Examiner insight

What to cover
The budget deficit affects debt, interest payments and confidence. The current account deficit reflects competitiveness and borrowing from abroad.
Watch out
Give a justified judgement.
Question paper p.6Mark scheme p.17Examiner report p.6Open in the tool
A-level Paper 2, June 2017, Q10Discuss25 marks
Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives.

Examiner insight

What to cover
Falling unemployment can raise inflation (Phillips curve), widen the current account deficit and increase inequality pressure.
Watch out
"Inevitably" invites a clear counter-argument.
Question paper p.6Mark scheme p.16Open in the tool
A-level Paper 2, Specimen, Q9Explain15 marks
Explain why economic growth is a key objective of UK Government economic policy.

Examiner insight

What to cover
Growth raises real incomes and living standards, creates jobs, increases tax revenue for public services and helps to reduce the debt ratio.
Watch out
Explain why each benefit matters to the government. Sustainable growth is a strong extra point.
Question paper p.6Mark scheme p.14Open in the tool

Data response questions on economic performance

A-level Paper 2, June 2025, Q3Explain9 marks

Context 1: The value of the Norwegian krone and its effects on Norway’s economy

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.

Examiner insight

What to cover
A stronger krone lowers import prices and reduces demand for exports, so inflation falls.
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
A-level Paper 3, June 2025, Q31To what extent10 marks

Case study: The UK automotive industry

To what extent, if at all, do the data suggest that the contribution the automotive industry makes to the UK economy has declined significantly since 2015? You must use the data in Extract B to support your assessment.

Examiner insight

What to cover
Use output, employment, exports and investment data to judge decline.
Watch out
Quote numbers from Extract B.
Question paper p.26Mark scheme p.5Insert p.3Examiner report p.6Open in the tool
AS Paper 2, June 2025, Q25Explain10 marks

Context 1: Population changes and the UK economy

Extract B (lines 6–7) states: ‘A shortage of labour is one of the factors that has contributed to rising inflation, threatening macroeconomic stability.’ Explain how a shortage of labour might contribute to rising inflation.

Examiner insight

What to cover
A labour shortage raises wages, so costs and prices rise (cost-push inflation).
Watch out
Explain cost-push inflation.
Question paper p.17Mark scheme p.10Insert p.1Open in the toolPractise the AD/AS diagram
A-level Paper 2, June 2024, Q3Explain9 marks

Context 1: Productivity and living standards

Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound...’ With the help of a diagram, explain how a depreciation of the pound may cause inflation.

Examiner insight

What to cover
A depreciation raises import prices and costs, so SRAS shifts left (cost-push inflation). Cheaper exports also raise AD (demand-pull).
Watch out
Link to both types of inflation.
Question paper p.3Mark scheme p.7Examiner report p.3Open in the toolDraw it: AD/AS diagram
AS Paper 2, June 2024, Q25Explain10 marks

Context 1: Troubling times for the UK economy

Extract B (lines 11–12) states: ‘In response, as inflation rose above the target rate, the Bank of England's Monetary Policy Committee acted by increasing Bank Rate.’ Explain how an increase in Bank Rate may lead to a reduction in the rate of inflation.

Examiner insight

What to cover
A higher Bank Rate reduces borrowing and spending and strengthens the pound, so AD falls and inflation falls.
Watch out
Explain the transmission mechanism.
Question paper p.17Mark scheme p.10Insert p.1Open in the toolPractise the AD/AS diagram
AS Paper 2, June 2024, Q26Evaluate25 marks

Context 1: Troubling times for the UK economy

Extract C (lines 17–18) states: ‘These policies could restrict economic growth in the short term and increase the likelihood of the economy going into recession.’ Use the extracts and your knowledge of economics to evaluate policies that might help an economy to recover from a recession.

Examiner insight

What to cover
Policies: fiscal stimulus, lower interest rates, and supply-side policies.
Watch out
Use the extracts.
Question paper p.19Mark scheme p.11Insert p.1Open in the toolPractise the AD/AS diagram
AS Paper 2, June 2024, Q31Explain10 marks

Context 2: The levelling-up agenda

Extract F (lines 1–2) states: ‘Unless the UK Government provides additional support, the outlook for some poorer regions may be gloomy. They often suffer from structural unemployment’. Explain why some regions of the UK suffer from structural unemployment.

Examiner insight

What to cover
Structural unemployment comes from the decline of traditional industries, skills mismatch and geographical immobility.
Watch out
Explain causes clearly.
Question paper p.27Mark scheme p.16Insert p.1Open in the tool
A-level Paper 2, June 2022, Q7Explain9 marks

Context 2: Is inflation a problem?

Extract E (lines 7–9) states: ‘It was hoped that policy measures, including a reduction in tariffs... would help to reduce inflation’. With the help of a diagram, explain how a reduction in tariffs could help to reduce inflation.

Examiner insight

What to cover
Lower tariffs reduce import prices and costs, so SRAS shifts right and the price level falls.
Watch out
Explain the fall in costs.
Question paper p.5Mark scheme p.14Examiner report p.5Marked student answers p.22Open in the toolDraw it: AD/AS diagram
A-level Paper 2, June 2022, Q8Evaluate25 marks

Context 2: Is inflation a problem?

Extract E (lines 15–17) states: ‘Policies were put in place to reduce the money supply and reduce government spending. The control of inflation became the main target of UK government macroeconomic policy.’ Using the data in the extracts and your knowledge of economics, evaluate the view that achieving a low and stable rate of inflation should be the main economic objective of governments.

Examiner insight

What to cover
Low, stable inflation supports growth, confidence and competitiveness.
Watch out
Use the data on Argentina.
Question paper p.5Mark scheme p.16Examiner report p.5Marked student answers p.26Open in the toolPractise the AD/AS diagram
AS Paper 2, June 2022, Q25Explain10 marks

Context 1: Economic growth

Extract B (line 2) states: ‘...there were signs that economies were in the midst of a global slowdown’. Explain how a global slowdown can affect employment in the UK.

Examiner insight

What to cover
A global slowdown reduces UK exports and investment, so output falls and firms cut jobs.
Watch out
Explain derived demand for labour.
Question paper p.16Mark scheme p.10Insert p.1Open in the tool
AS Paper 2, June 2022, Q26Evaluate25 marks

Context 1: Economic growth

Extract C (lines 2–4) states: ‘...the Prime Minister, Boris Johnson, had promised to make the 2020s a “decade of prosperity and opportunity”. If this is to be achieved, it will be essential to find ways to boost both short-run and long-run growth’. Use the extracts and your knowledge of economics to evaluate different policies that can be used to increase the long-run rate of growth of the UK economy.

Examiner insight

What to cover
Policies: supply-side (education, infrastructure), fiscal and monetary.
Watch out
Use the extracts.
Question paper p.18Mark scheme p.11Insert p.1Open in the tool
A-level Paper 2, November 2021, Q3Explain9 marks

Context 1: National debt and government spending

Extract B (line 9) states: ‘The government spending cuts also severely damaged private-sector jobs.’ With the help of a diagram, explain how a reduction in government spending could increase unemployment in the private sector.

Examiner insight

What to cover
Lower government spending reduces AD. Private firms that supply the government lose orders, and lower incomes reduce consumption, so output and jobs fall (the multiplier).
Watch out
Explain the multiplier effect.
Question paper p.3Mark scheme p.8Open in the toolDraw it: AD/AS diagram
A-level Paper 2, November 2021, Q7Explain9 marks

Context 2: South Korea’s economy

Extract E (line 14) states: ‘Investment in R&D has been an important driver of economic growth and industrial progress.’ With the help of a diagram, explain how investment in research and development (R&D) can help to increase the long-run growth rate of an economy.

Examiner insight

What to cover
R&D creates new technology and raises productivity. LRAS shifts right, so the long-run growth rate rises.
Watch out
Explain long-run growth clearly.
Question paper p.5Mark scheme p.13Open in the toolDraw it: AD/AS diagram
AS Paper 2, June 2020, Q26Assess25 marks

Context 1: The UK retail industry

Extract C (line 1) states: ‘So, is the changing retail industry and the decline in the high street bad news for the economy?’ Use the extracts and your knowledge of economics to assess whether the changes taking place in the retail industry are likely to cause lasting damage to UK macroeconomic performance.

Examiner insight

What to cover
Retail changes affect jobs, spending and growth.
Watch out
Use the extracts.
Question paper p.18Mark scheme p.11Insert p.1Open in the tool
AS Paper 2, June 2020, Q32Assess25 marks

Context 2: Conflicting economic objectives

Extract F (lines 13–17) states: ‘... it is not easy for a government to achieve all of its macroeconomic objectives at the same time... if confidence improves and the manufacturing industry picks up, it will be difficult to avoid more inflationary pressures.’ Use the extracts and your knowledge of economics to assess the view that as the rate of economic growth increases, a rise in inflation is inevitable.

Examiner insight

What to cover
Growth can raise inflation when the economy is near capacity.
Watch out
Use the extracts.
Question paper p.28Mark scheme p.17Insert p.1Open in the toolPractise the AD/AS diagram
A-level Paper 2, June 2019, Q7Explain9 marks

Context 2: UK fiscal policy and taxation

Extract E (lines 11–12) states ‘If growth could be increased, the budget deficit would fall much faster.’ With the help of a diagram, explain why a higher rate of economic growth is likely to reduce the budget deficit.

Examiner insight

What to cover
Higher growth raises tax revenue (income tax, VAT, corporation tax) and lowers spending on benefits, so the deficit falls automatically.
Watch out
Explain automatic stabilisers.
Question paper p.5Mark scheme p.13Open in the toolDraw it: AD/AS diagram
AS Paper 2, June 2019, Q26Evaluate25 marks

Context 1: Artificial intelligence

Extract B (lines 9–11) states: ‘Inevitably, some types of employment, industries and regions are likely to be affected more than others, and consequently we might expect to see a sharp rise in structural unemployment.’ Use the extracts and your knowledge of economics to evaluate different policies that a government could use to try to prevent a rise in structural unemployment.

Examiner insight

What to cover
Policies: training, regional policy, benefits, and investment in new industries.
Watch out
Use the extracts.
Question paper p.18Mark scheme p.12Insert p.1Open in the tool
A-level Paper 2, June 2018, Q7Explain9 marks

Context 2: Monetary policy and stability

Extract E (lines 16–17) states ‘However, some argue that trying to maintain stable prices and low unemployment could create trade-offs.’ With the help of a diagram, explain why a trade-off between price stability and low unemployment might occur.

Examiner insight

What to cover
Lower unemployment means a tighter labour market, so wages rise faster. Higher costs push up prices. To cut inflation, AD must fall, which raises unemployment.
Watch out
Explain the cause, not just the curve.
Question paper p.5Mark scheme p.11Open in the toolDraw it: Phillips curve diagram
AS Paper 2, June 2018, Q26Assess25 marks

Context 1: Economic shocks and the UK economy

Extract C (lines 5–6) states ‘Some economists believe that a reduction in the level of economic activity and an increase in unemployment are inevitable.’ Use the extracts and your knowledge of economics to assess the view that when an economy experiences a negative economic shock there will always be a sustained increase in unemployment.

Examiner insight

What to cover
A negative shock reduces AD and output, so unemployment rises.
Watch out
Use the extracts.
Question paper p.18Mark scheme p.12Insert p.1Open in the tool
A-level Paper 2, June 2017, Q7Explain9 marks

Context 2: Inflation, deflation and economic policy

Extract E (lines 9–10) states ‘Improvements in productivity on the supply side of the economy could actually lead to more deflation.’ With the help of a diagram, explain how improvements in productivity could cause deflation.

Examiner insight

What to cover
Higher productivity lowers unit costs, shifting SRAS and LRAS right. The price level falls while real output rises: benign deflation.
Watch out
Explain why this deflation is "good": output grows as prices fall.
Question paper p.5Mark scheme p.12Open in the toolDraw it: AD/AS diagram
A-level Paper 2, June 2017, Q8Evaluate25 marks

Context 2: Inflation, deflation and economic policy

Extract F (lines 19–20) states ‘What is not clear is what should be done if low inflation turns to bad deflation.’ Using the data in the extracts and your knowledge of economics, evaluate the view that monetary policy is the most effective way of tackling deflation in developed economies such as the UK and Japan.

Examiner insight

What to cover
Monetary policy can cut interest rates and use QE to raise AD and inflation expectations.
Watch out
Separate good deflation (supply-side) from bad deflation (demand-side). The right policy depends on the cause.
Question paper p.5Mark scheme p.13Open in the toolPractise the AD/AS diagram
A-level Paper 3, June 2017, Q31To what extent10 marks

Case study: The march of the makers – does manufacturing matter?

To what extent, if at all, do you consider that the UK manufacturing sector has been in decline since 2003? You must use the data in Extract B to support your assessment.

Examiner insight

What to cover
Use the data to show falls and rises in manufacturing output and employment since 2003.
Watch out
Separate relative decline from absolute decline, and quote numbers.
Question paper p.20Mark scheme p.5Insert p.2Open in the tool
A-level Paper 3, June 2017, Q32Explain15 marks

Case study: The march of the makers – does manufacturing matter?

Explain why, in advanced economies, economic growth is usually accompanied by a fall in employment in manufacturing but an increase in employment in the service sector.

Examiner insight

What to cover
As incomes rise, demand shifts to services (high YED). Productivity in manufacturing rises, so fewer workers are needed. Comparative advantage shifts.
Watch out
Explain both demand-side and supply-side reasons.
Question paper p.22Mark scheme p.7Insert p.2Open in the tool
AS Paper 2, June 2016, Q25Explain10 marks

Context 1: Falling world commodity prices give the UK economy a boost

Extract B (lines 6 to 8) states ‘The weakness in global energy prices and food prices combined with the recent appreciation in the pound sterling exchange rate help to explain the recent fall in inflation in the UK.’ Explain why a rise in the pound sterling exchange rate is likely to affect the rate of inflation in the UK.

Examiner insight

What to cover
A stronger pound makes imports cheaper, so costs and prices fall and inflation falls.
Watch out
Explain lower import prices.
Question paper p.14Mark scheme p.11Insert p.1Open in the toolPractise the AD/AS diagram
AS Paper 2, June 2016, Q26Assess25 marks

Context 1: Falling world commodity prices give the UK economy a boost

Extract C (lines 4 to 7) states ‘Lower commodity prices have also been good for most businesses... However, not everyone benefits.’ Use the data in the extracts and your knowledge of economics to assess the likely impact of the fall in world commodity prices on the performance of the UK economy.

Examiner insight

What to cover
Lower commodity prices reduce costs and raise real incomes.
Watch out
Use the extracts.
Question paper p.16Mark scheme p.12Insert p.1Open in the tool
AS Paper 2, June 2016, Q32Discuss25 marks

Context 2: How has immigration affected the performance of the UK economy?

Extract F (lines 1 to 2) states ‘Immigration is very important for the UK economy; it is estimated that foreign-born people comprise around 15% of the UK labour force.’ Use the data in the extracts and your economic knowledge to discuss the ways in which immigration affects the performance of the UK economy.

Examiner insight

What to cover
Immigration raises labour supply and growth.
Watch out
Use the extracts.
Question paper p.26Mark scheme p.19Insert p.1Open in the tool
A-level Paper 3, Specimen, Q31Compare10 marks

Case study: Brazil: The hot ‘BRIC’

How does Brazil compare with the UK in relation to human capital and macroeconomic stability? You must use the data in Extract C to support your assessment.

Examiner insight

What to cover
Compare the two economies on human capital (education, health) and on stability (inflation, growth, unemployment).
Watch out
Paper 3 data questions: quote specific numbers from the extract and calculate differences.
Question paper p.18Mark scheme p.5Insert p.2Open in the tool
AS Paper 2, Specimen, Q26Assess25 marks

Context 1: UK economic recovery

Extract B (lines 4–5) states, ‘Yet there is so much more to an economy than this: the UK economy is open to a range of injections and withdrawals’. Using the data in the extracts and your economic knowledge, assess the possible effects on UK macroeconomic performance if exports grow more quickly than imports.

Examiner insight

What to cover
Exports growing faster than imports raise AD, growth and employment, and improve the current account.
Watch out
Use the extracts.
Question paper p.15Mark scheme p.11Insert p.1Open in the toolDraw it: AD/AS diagramOr: multiplier diagram
AS Paper 2, Specimen, Q31Explain10 marks

Context 2: UK employment and unemployment

Extract F (line 7–8) states that ‘This is a move away from the more familiar role of interest rates, which has been to control inflation.’ Explain how monetary policy can be used to control inflation.

Examiner insight

What to cover
Higher interest rates reduce borrowing and spending and strengthen the pound, so AD falls and inflation falls.
Watch out
Explain the transmission mechanism.
Question paper p.22Mark scheme p.16Insert p.1Open in the toolPractise the AD/AS diagram
AS Paper 2, Specimen, Q32Evaluate25 marks

Context 2: UK employment and unemployment

Extract E (lines 11–12) states that ‘the unemployment rate as measured by the Labour Force Survey remains stubbornly high at 7.7%.’ Using the data in the extracts and your economic knowledge, evaluate different policies that could be used to reduce the rate of unemployment in the UK.

Examiner insight

What to cover
Demand-side policies reduce cyclical unemployment; supply-side policies reduce structural and frictional unemployment.
Watch out
Use the extracts.
Question paper p.24Mark scheme p.17Insert p.1Open in the tool

Multiple choice questions

  1. A-level Paper 3, June 2025, Q5

    Which one of the following is most likely to lead to an increase in the number of people who are frictionally unemployed in the UK?

  2. A-level Paper 3, June 2025, Q11

    Figure 2 shows the long-run trend rate of unemployment and the actual rate of unemployment in a country over a period of time. Figure 2 At which one of the following points was the economy most likely to be in the recession phase of its…

  3. A-level Paper 3, June 2025, Q16

    Table 4 shows the index of consumer prices and the unemployment rate for an economy. The data is for the end of each quarter in a particular year. The index of consumer prices for the final quarter of the previous year was 120.9. Table 4…

  4. A-level Paper 3, June 2025, Q29

    All other things being equal, which one of the following is most likely to be a consequence of inflation in the UK?

  5. AS Paper 2, June 2025, Q1

    Which one of the following is most likely to be an objective of government macroeconomic policy?

  6. AS Paper 2, June 2025, Q5

    Which one of the following statements concerning short-run economic growth and long-run economic growth is correct?

  7. AS Paper 2, June 2025, Q6

    When an economy goes into a recession, there is most likely to be an increase in

  8. AS Paper 2, June 2025, Q9

    Table 2 shows various macroeconomic indicators for an economy from 2021 to 2023. Table 2 Balance of Real GDP Unemployment payments on Year Inflation (%) growth (%) rate (%) current account (£bn) 2021 2.5 4.7 2.5 –12.7 2022 2.8 4.2 2.9…

  9. AS Paper 2, June 2025, Q14

    The textile industry is a major employer of unskilled labour in an economy. The introduction of labour-saving technology in this industry is most likely to lead to an increase in

  10. A-level Paper 3, June 2024, Q16

    An economy's long-run trend rate of economic growth in real gross domestic product (GDP) is 2.8% per annum. In 2018, the economy's actual real GDP was equal to its trend level of real GDP. Table 4 shows the economy's actual rate of growth…

  11. AS Paper 2, June 2024, Q6

    Disinflation exists when

  12. AS Paper 2, June 2024, Q8

    Figure 1 shows the rate of unemployment in an economy over a period of time. Figure 1 At which one of the following points was the economy most likely to be in the recovery phase of the economic cycle?

  13. AS Paper 2, June 2024, Q9

    Which type of unemployment is caused by a fall in aggregate demand leading to a fall in the demand for labour?

  14. AS Paper 2, June 2024, Q10

    Country W is operating at its normal capacity level of output. When one of its trading partners experiences economic growth, this leads to a rise in demand for Country W’s exports. All other things being equal, what is the most likely…

  15. A-level Paper 3, June 2023, Q11

    An economy operating at its long-run productive capacity at the start of 2020 has a trend rate of growth of 6% per year. Real GDP increases by 2% in 2021 and 10% in 2022. Which one of the following accurately describes the position of the…

  16. A-level Paper 3, June 2023, Q16

    Figure 4 shows a short-run Phillips curve (SRPC) and a long-run Phillips curve (LRPC). Government intervention moves the economy from position A to position B and then the economy moves from position B to position C. Figure 4 Which one of…

  17. AS Paper 2, June 2023, Q7

    Which one of the following is most likely to be used to identify a phase of the economic cycle?

  18. AS Paper 2, June 2023, Q8

    An economy has a low rate of economic growth and high unemployment. Which one of the following sets of policies would be most likely to increase growth and reduce unemployment whilst avoiding a rise in inflation?

  19. AS Paper 2, June 2023, Q9

    Figure 1 shows the production possibility curve for an economy producing services and manufactured goods. Figure 1 The economy moves from point W to point Z. It can be concluded that

  20. AS Paper 2, June 2023, Q12

    Table 4 shows the percentage change in real GDP in an economy in the four years 2016 to 2019. Table 4 Year Change in real GDP (%) 2016 4.2 2017 3.1 2018 2.6 2019 1.1 Over the period 2016 to 2019, which one of the following can be concluded…

  21. AS Paper 2, June 2023, Q15

    An economy experiences a low trend rate of economic growth, no output gap and a fall in total hours worked. In these circumstances, which one of the following combinations of events is most likely to occur? Cyclical Labour National output…

  22. AS Paper 2, June 2023, Q17

    An economy is experiencing deflation and high employment. The most likely cause of this situation is a

  23. A-level Paper 3, June 2022, Q18

    Which one of the following is a supply-side policy aimed at reducing the natural rate of unemployment?

  24. A-level Paper 3, June 2022, Q22

    Table 3 shows different combinations of performance for three macroeconomic indicators. Which one of the combinations, A, B, C or D, is most likely to indicate an economy experiencing an economic boom? Table 3 Imports Price level Job…

  25. A-level Paper 3, June 2022, Q27

    Changing patterns of consumption have meant that summer holidays at UK seaside towns have become less popular. As a result, UK seaside holiday towns are affected by seasonal unemployment and increasing structural unemployment. Which one of…

  26. A-level Paper 3, June 2022, Q30

    Unemployed workers in the south of a country are unable to take up jobs in the north of the country due to higher housing costs. This is an example of

  27. AS Paper 2, June 2022, Q1

    Which one of the following is most likely to be an objective of government economic policy?

  28. AS Paper 2, June 2022, Q4

    Unemployment rose in an economy despite overall economic growth. This is most likely to be explained by an increase in

  29. AS Paper 2, June 2022, Q5

    An economy experiences an increasing negative output gap. Which one of the following combinations of outcomes most accurately describes the likely effects of this? Inflationary Imports Unemployment pressure

  30. AS Paper 2, June 2022, Q6

    A deflationary policy is designed to

  31. AS Paper 2, June 2022, Q12

    The Bank of England decides to raise interest rates to bring inflation back to its target rate. This policy is less likely to be effective if at the same time

  32. AS Paper 2, June 2022, Q18

    An economy experiencing a high rate of short-run economic growth is likely to have an increase in

  33. AS Paper 2, June 2022, Q20

    A government wanting to use monetary policy to reduce deflation could decrease the

  34. A-level Paper 3, November 2021, Q4

    Which one of the following changes in macroeconomic performance is most likely to involve a trade-off, at least in the short-run, between the objectives of government macroeconomic policy?

  35. A-level Paper 3, November 2021, Q17

    Table 3 contains labour market data, in millions, for the UK in 2019. Table 3 Population aged 16 years and over 53.3 Economically active labour force 34.3 Total employment 33.0 Total unemployment 1.3 Source: ONS Which one of the following…

  36. A-level Paper 3, November 2021, Q22

    Which one of the following combinations of possible shocks: A, B, C, or D, is most likely to move an economy from a negative output gap to a positive output gap? An unexpected increase in

  37. A-level Paper 3, November 2021, Q25

    In 2019, an economy operating at full capacity on its long-run aggregate supply curve grew at its trend growth rate of 5% per annum. It had a national income of £200 billion. In 2020, the economy experienced 2% actual growth. It follows…

  38. A-level Paper 3, November 2020, Q13

    Table 2 shows the inflation rate and the rate of growth of the money supply for an economy between 2016 and 2019. Table 2 Rate of growth Year Inflation of money supply 2016 3.1% 3.5% 2017 3.5% 3.3% 2018 2.9% 3.2% 2019 2.5% 2.0% From the…

  39. A-level Paper 3, November 2020, Q19

    The long-run Phillips curve shows that

  40. A-level Paper 3, November 2020, Q25

    An economy is estimated to be experiencing a 2% rate of frictional unemployment plus a 3% rate of structural and real wage unemployment. If it is also experiencing cyclical unemployment of 4%, its natural rate of unemployment is most…

  41. AS Paper 2, June 2020, Q5

    An economy has recently recovered from a recession and closed its negative output gap. The government would now like to increase the trend rate of economic growth. Which one of the following policies is likely to be the most effective?

  42. AS Paper 2, June 2020, Q10

    In which one of the following situations is there most likely to be cyclical unemployment in an economy?

  43. AS Paper 2, June 2020, Q15

    Figure 4 shows the performance of an economy through time. Figure 4 As the economy moves from point A to point B, it can be concluded that

  44. AS Paper 2, June 2020, Q20

    The level of unemployment in an economy has fallen. The most likely cause is

  45. A-level Paper 3, June 2019, Q2

    The table below contains selected data on a country’s macroeconomic performance over a 20 year period. Balance of trade Unemployment Rate of inflation on current Year (%) (%) account ($ bn) 1998 6.0 3.5 –20 2003 5.8 3.0 –19 2008 5.5 2.5…

  46. A-level Paper 3, June 2019, Q15

    The table below shows different combinations of changes in the rate of interest and the government’s budget position. The economy has a negative output gap. All other things being equal, which one of the combinations of policies, A, B, C…

  47. AS Paper 2, June 2019, Q1

    When an economy goes into a recession, there is most likely to be a

  48. AS Paper 2, June 2019, Q3

    Which one of the following is a true statement about the Labour Force Survey (LFS) measure of unemployment? The LFS measure of unemployment includes

  49. AS Paper 2, June 2019, Q5

    The government of an economy implements an expansionary fiscal policy, increasing government spending and cutting taxes. In the short run, such a policy is likely to result in a conflict between which of the following macroeconomic…

  50. AS Paper 2, June 2019, Q19

    Which one of the following sets of circumstances is most likely, other things remaining the same, to lead to demand-pull and cost-push inflation in an economy?

  51. AS Paper 2, June 2019, Q20

    The diagram below shows the aggregate demand curve (AD), short-run aggregate supply curve (SRAS), and long-run aggregate supply curve (LRAS) for an economy. The current level of real GDP is Y. Which one of the following policies is most…

  52. A-level Paper 3, June 2018, Q9

    The short-run Phillips curve below illustrates the relationship between unemployment and inflation in an economy. The Phillips curve shows that in this economy

  53. A-level Paper 3, June 2018, Q30

    The table below shows indices for real GDP and consumer prices in an economy over six quarters. Index of consumer Quarter Index of real GDP prices 1 106 100 2 105 105 3 104 111 4 105 116 5 107 120 6 110 123 During these six quarters the…

  54. AS Paper 2, June 2018, Q5

    Europe and North America enter a period of recovery from a recession. Other things remaining the same, the impact on the UK economy is most likely to be

  55. AS Paper 2, June 2018, Q9

    Inflationary pressures are normally low when an economy has a negative output gap. The most likely explanation for this is that

  56. AS Paper 2, June 2018, Q16

    A government raises income tax rates for very high wage earners and spends all of the extra revenue raised on higher welfare benefits. The result is a reduction in income inequality and a fall in the rate of economic growth. This is also…

  57. AS Paper 2, June 2018, Q17

    The diagram below shows the annual rate of inflation in the UK between 2011 and 2014. From the graph it can be concluded that between 2011 and 2014

  58. AS Paper 2, June 2018, Q20

    The diagram below shows two production possibility frontiers (PPF) for an economy. The economy improves its macroeconomic performance by moving from point S to point T. This is most likely to represent

  59. A-level Paper 3, June 2017, Q17

    The primary measure of unemployment in the UK is based on the

  60. AS Paper 2, June 2017, Q5

    Which one of the following would be most likely to generate growth in an economy without producing an increase in inflation?

  61. AS Paper 2, June 2017, Q6

    Which one of the following is an objective of UK government macroeconomic policy?

  62. AS Paper 2, June 2017, Q8

    The annual rate of change in the consumer prices index for an economy falls from 6% to 3%. All other things being equal, this economy is best described as

  63. AS Paper 2, June 2017, Q11

    All other things being equal, under which of the following circumstances is an economy most likely to experience deflation? Labour Exchange rate Employment productivity

  64. AS Paper 2, June 2017, Q16

    The diagram below shows two production possibility frontiers (PPF) for an economy. Which one of the following movements represents an economy that has experienced short-run but not long-run economic growth?

  65. AS Paper 2, June 2017, Q18

    Which one of the following is most likely to reduce cyclical unemployment in the UK?

  66. AS Paper 2, June 2016, Q4

    A country has a slow rate of growth of productivity and rising cyclical unemployment. All other things being equal, which measures are most likely to increase the rate of growth of productivity and reduce cyclical unemployment?

  67. AS Paper 2, June 2016, Q7

    As a consequence of a severe global recession, an economy has experienced a demand-side shock and is now growing below its trend rate. All other things being equal, which one of the following combinations, A, B, C or D, is now most likely…

  68. AS Paper 2, June 2016, Q8

    In which one of the following situations could the UK be said to be experiencing a negative output gap?

  69. AS Paper 2, June 2016, Q9

    Structural unemployment is most likely to occur because of

  70. AS Paper 2, June 2016, Q11

    Which one of the following combinations, A, B, C or D, is most likely to occur in the recovery phase of the economic cycle? Growth of Inflation Unemployment Investment GDP rate

  71. A-level Paper 3, Specimen, Q17

    In the diagram below, SRPC is a short-run Phillips curve. The vertical axis measures the

  72. A-level Paper 3, Specimen, Q28

    The data below shows economic growth rates, unemployment rates and inflation rates for an economy. Real output growth Unemployment Inflation rate Year rate (%) rate (%) (%) 2010 2 4 2011 3 3 2012 4 3 2013 5 2 All other things being equal…

  73. AS Paper 2, Specimen, Q2

    The diagram below shows two production possibility frontiers for an economy. The economy is initially producing at point X on production possibility frontier EE. The outward movement of the production possibility frontier from EE to FF…

  74. AS Paper 2, Specimen, Q3

    Which one of the following combinations is correct regarding the rate of inflation and the responsibilities of the UK Government and Monetary Policy Committee (MPC) of the Bank of England? Inflation target set by Interest rate set by

  75. AS Paper 2, Specimen, Q4

    Which one of the following is most likely to cause demand-pull inflation?

  76. AS Paper 2, Specimen, Q9

    The diagram below shows the actual level of real GDP and the trend level of real GDP over time for an economy. Between the points P and Q, which one of the following is most likely to be correct?

  77. AS Paper 2, Specimen, Q10

    Structural unemployment is most likely to be caused by

  78. AS Paper 2, Specimen, Q19

    Which one of the following is most likely to result from a growing negative output gap?

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