Paper 2: AS Level Data Response and Essays · 9708/22

Cambridge International (CAIE) AS Paper 2, March 2023

All 13 written questions from Cambridge International (CAIE) AS Paper 2 (March 2023), AS Level Data Response and Essays. Case studies: Inflation in the United States (US). Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Cambridge removed part of the case study text from the public paper for copyright reasons.

Section A

Case study

Inflation in the United States (US)

In the extracts: Economist

Q1(a)Compare2 marks

Using Fig. 1.1, compare the US inflation rate between July and December 2020 with that between January and June 2021.

TopicPrice stability

Question paper p.3 Mark scheme p.8 Examiner report p.3 Open in the tool

Q1(b)Explain2 marks

Using the information provided, explain what is meant by ‘the US government’s economic stimulus package’.

TopicFiscal policy4.6 Price stability5.3 Monetary policy

Question paper p.3 Mark scheme p.8 Examiner report p.3 Open in the tool

Q1(c)Consider4 marks

Consider the extent to which an increase in interest rates could reduce the rate of inflation in the US.

TopicMonetary policy

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool

Q1(d)Assess6 marks

With the help of an AD/AS diagram, assess whether the rising inflation rate in the US has been caused by changes to the demand side or changes to the supply side of the economy.

TopicPrice stability

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool Draw it: AD/AS diagram

Q1(e)Assess6 marks

Assess the possible consequences of a rising rate of inflation for a country such as the US.

TopicPrice stability

Question paper p.3 Mark scheme p.10 Examiner report p.3 Open in the tool

Section B

Q2(a)OptionalExplain8 marks

Explain the functions of price in resource allocation and consider the importance of these functions in relation to the potential effectiveness of a market economy.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicThe interaction of demand and supply

Question paper p.4 Mark scheme p.11 Examiner report p.4 Open in the tool

Q2(b)OptionalAssess12 marks

Assess whether all market economies should become mixed economies.

TopicResource allocation in different economic systems

Question paper p.4 Mark scheme p.12 Examiner report p.4 Open in the tool

Q3(a)OptionalExplain8 marks

Explain the possible economic reasons for inequality of income and consider whether inequality of income can benefit an economy.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicAddressing income and wealth inequality

Question paper p.4 Mark scheme p.13 Examiner report p.4 Open in the tool

Q3(b)OptionalAssess12 marks

With the help of a diagram, assess whether the introduction of a minimum price in a market can be justified.

TopicMethods and effects of government intervention in markets

Question paper p.4 Mark scheme p.14 Examiner report p.4 Open in the tool Draw it: minimum price diagram

Section C

Q4(a)OptionalExplain8 marks

Explain the circular flow of income in a closed economy and consider the extent to which the circular flow of income changes as an economy becomes an open economy.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicIntroduction to the circular flow of income4.3 Aggregate demand and aggregate supply analysis

Question paper p.4 Mark scheme p.15 Examiner report p.5 Open in the tool

Q4(b)OptionalAssess12 marks

Assess whether the consequences of economic growth for an economy are always positive.

TopicEconomic growth

Question paper p.4 Mark scheme p.16 Examiner report p.5 Open in the tool

Q5(a)OptionalExplain8 marks

With the help of a diagram, explain what is meant by an appreciation of a floating exchange rate and consider whether a country can only benefit from the appreciation of its currency.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicExchange rates

Question paper p.4 Mark scheme p.17 Examiner report p.5 Open in the tool Draw it: AD/AS diagram

Q5(b)OptionalAssess12 marks

Assess whether supply-side policies are the most effective way to correct a deficit on the current account of the balance of payments of an economy.

TopicPolicies to correct imbalances in the current account6.3 Current account of the balance of payments

Question paper p.4 Mark scheme p.18 Examiner report p.5 Open in the tool Practise the AD/AS diagram

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), 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.

Section A

Inflation in the United States (US)

Section B

Section C

Other years of Cambridge International (CAIE) AS Paper 2

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