Section A
Q11 mark
Which one of the following best describes the cause of unemployment experienced in Mongolia?
- ASeasonal unemployment
- BReal wage inflexibility
- CStructural unemployment
- DDemand deficiency
Show the answer
The answer is A.
TopicMacroeconomic objectives and policy conflicts
Q21 mark
2 The table shows the number of people in employment in Jordan. Number of people in employment January 2017 10 279 000 January 2018 9 353 000 (Source: https://tradingeconomics.com/jordan/employed-persons) What is the percentage change in the number of people in employment between January 2017 and January 2018?
- A-10%
- B-9%
- C9%
- D10%
Show the answer
The answer is B.
Q31 mark
Which one of the following is most likely to be a benefit of economic growth?
- AEnvironmental damage
- BImproved public services
- CA negative output gap
- DA decrease in tax revenues
Show the answer
The answer is B.
TopicEconomic growth
Q41 mark
4 The diagram shows a shift in the aggregate demand curve for an economy. Average price level AD1 AD Real GDP Which of the following combinations was the most likely cause of the change from AD to AD1? Interest rate Exchange rate
- ARise Fall
- BRise Rise
- CFall Fall
- DFall Rise
Show the answer
The answer is C.
TopicMeasures of economic performance
Q51 mark
2020. The UK Government paid a subsidy for a windfarm. Which one of the following is also an interventionist supply-side policy?
- ADeregulation of the labour market
- BPrivatisation
- CA reduction in interest rates
- DRegional policy
Show the answer
The answer is D.
TopicFiscal, monetary and supply-side policy
Q61 mark
6 The chart shows the UK balance of trade on current account, month on month, May 2017 to May 2018 (£ billion, seasonally adjusted). £bn 0 -5 -10 -15 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 Trade in goods balance Trade in services balance Total trade balance (Source: https://www.ons.gov.uk/economy/nationalaccounts/ balanceofpayments/bulletins/uktrade/may2018) What can be deduced from this chart?
- AThe trade in services balance was in deficit in May 2017
- BThe trade in goods deficit was smallest in February 2018
- CThe value of exports exceeded the value of imports in September 2017
- DThe total UK trade deficit was the largest in November 2017
Show the answer
The answer is B.
TopicMeasures of economic performance
Section B
Q7Explain4 marks
Explain one possible effect of this change in net migration on Lithuania's long-run aggregate supply.
Mark splitKnowledge 1Application 1Analysis 2
TopicAggregate supply
Q8Explain4 marks
With reference to the chart, explain the difference between inflation and disinflation.
Mark splitKnowledge 2Application 2
TopicMacroeconomic objectives and policy conflicts
Q9Explain4 marks
Explain one possible impact of increased real incomes on the USA's net trade balance.
Mark splitKnowledge 1Application 1Analysis 2
TopicMeasures of economic performance
Q10Draw4 marks
Draw a LRAS and AD diagram to show the possible long-run impact of this significant increase in the base interest rate on AD, the price level and real output for Turkey.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Q11Calculate4 marks
Calculate the final increase in GDP resulting from this €18 billion investment. Show your workings.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Section C
Case study
The Canadian economy
Extracts: Figure 1: Quarterly real GDP growth rate, quarter 1 2013 - quarter 2 2018 · Figure 2: B · Extract A: The economic climate · Extract B: Government policies to increase wellbeing · Figure 1: based on data taken from https://tradingeconomics.com/canada/gdp-growth · Figure 2: based on data taken from https://www.fraserinstitute.org/sites/default/files/business-investment-
In the extracts: Economic Co-operation, European Union, South Korea, United Kingdom, United States, Canadian, GDP, Canada, OECD, Car
Q12(a)Define2 marks
Define the term 'Consumption' (Extract A, line 9).
Mark splitKnowledge 2
TopicAggregate demand
Q12(b)Explain4 marks
With reference to Figure 1, explain the term 'real GDP growth rate'.
Mark splitKnowledge 2Application 2
TopicMeasures of economic performance
Q12(c)Analyse6 marks
With reference to Extract A, analyse one possible macroeconomic impact of the increase in house prices on the Canadian economy.
Mark splitKnowledge 2Application 2Analysis 2
TopicMeasures of economic performance
Q12(d)Examine8 marks
With reference to Extract B, examine the likely impact of government policies to increase wellbeing.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicMeasures of economic performance
Q12(e)Discuss14 marks
Using the information in Figure 2 and Extract A, discuss the impact of low investment on Canada's economy.
Mark splitEvaluation 6
TopicMeasures of economic performance
Section D
Q13OptionalEvaluate20 marks
Evaluate the costs of rapid economic growth on an economy of your choice.
Mark splitEvaluation 8
TopicEconomic growth
Q14OptionalEvaluate20 marks
Evaluate the impact of reflationary demand-side policies on an economy of your choice.
Mark splitEvaluation 8
TopicAggregate demand
