Unit 2: Macroeconomic performance and policy · WEC12/01

Edexcel International AS Unit 2, June 2025

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 2 (June 2025), Macroeconomic performance and policy. Case studies: The US economy. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report

Section A

Q21 mark
Which one of the following was the most likely cause of this decrease in investment?
  1. AAn increase in the availability of credit
  2. BA decrease in the tax on company profits
  3. CA decrease in business confidence
  4. DAn increase in the rate of economic growth
Show the answer

The answer is C.

TopicEconomic growth

Question paper p.2Mark scheme p.4Open in the tool
Q41 mark
Ceteris paribus, which one of the following is the most likely effect of this decision?
  1. AAn increase in the rate of corporation tax
  2. BA decrease in the rate of unemployment
  3. CAn increase in the rate of economic growth
  4. DA decrease in the rate of inflation
Show the answer

The answer is D.

TopicEconomic growth

Question paper p.3Mark scheme p.4Open in the tool
Q51 mark
5 Which one of the following describes how unemployment is measured using the International Labour Organization (ILO) definition?
  1. AWhen a person has been actively seeking work in the past four weeks and is available to start work in the next two weeks
  2. BWhen a person has been actively seeking work in the past four months and is available to start work in the next two months
  3. CWhen a person has been actively seeking work in the past two months and is available to start work in the next four months
  4. DWhen a person has been actively seeking work in the past two weeks and is available to start work in the next four weeks
Show the answer

The answer is A.

TopicMacroeconomic objectives and policy conflicts

Question paper p.3Mark scheme p.4Open in the tool
Q61 mark
Which one of the following is the most likely cause of the worsening in Maldives' balance of trade in goods and services?
  1. AA low rate of inflation relative to its trading partners
  2. BA fall in the real incomes of the citizens of Maldives
  3. CA decrease in the external value of Maldives' currency
  4. DA deterioration in the quality of Maldives' goods and services
Show the answer

The answer is D.

TopicMeasures of economic performance

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

Section B

Section C

Case study

The US economy

Extracts: Figure 1: Annual rate of inflation*, as measured by the consumer price index (CPI), · Extract A: Rate of inflation · Extract B: Economic growth · Figure 1: adapted from: https://tradingeconomics.com/united-states/core-inflation-rate · Extract A: adapted from: FT, https://www.ft.com/content/d413fffb-77bd-4aa1-a02c-c07c7860fbc7 · Extract B: adapted from: WP, https://www.washingtonpost.com/business/2024/01/25/gdp-2023-economy-boom/

In the extracts: Federal Reserve, CPI, Annual, Economic, Economists, USA's

Section D

Question text is quoted from the question papers, © Pearson Edexcel, 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.