Unit 2: Macroeconomic performance and policy · WEC12/01

Edexcel International AS Unit 2, October 2020

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 2 (October 2020), Macroeconomic performance and policy. Case studies: The Australian 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
2 The table shows the consumer price index (CPI) for the UK in January 2015 and January 2016. Consumer price index January 2015 200 January 2016 206 (Source: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7g7/mm23) What can be deduced from this data over this period?
  1. AThe purchasing power of money fell by 3%
  2. BThe rate of inflation was 6%
  3. CThe standard of living must have fallen by 3%
  4. DThe price of exports increased by 6%
Show the answer

The answer is A.

TopicMeasures of economic performance

Question paper p.2Mark scheme p.4Examiner report p.3Open in the tool
Q61 mark
6 The chart shows the value of the Canadian dollar in terms of the US dollar exchange rate, January 2018 to December 2018. 0.82 0.81 0.80 0.79 0.78 US $ 0.77 0.76 0.75 0.74 0.73 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Source: https://www.cbc.ca/news/business/loonie-canadian-dollar-1.4964691) What can be deduced from this chart?
  1. ACanadian exports will be less competitive in the USA
  2. BCanadian imports from the USA will be more competitive
  3. CBetween the start of February and the end of June, the Canadian dollar increased in value against the US dollar
  4. DBetween the start of October and the end of December, the Canadian dollar decreased in value against the US dollar
Show the answer

The answer is D.

Question paper p.4Mark scheme p.5Examiner report p.3Open in the tool

Section B

Section C

Case study

The Australian economy

Extracts: Figure 1: Annual real GDP growth (%), 2012 to 2018 · Figure 2: Balance of trade in goods and services, 2012 to 2017 (US$ billion) · Figure 1: based on data taken from https://www.statista.com/graphic/1/263602/gross-domestic-product- · Figure 2: based on data taken from https://data.oecd.org/trade/trade-in-goods-and-services.htm · Extract A: adapted from Australia Special Report, The Economist, 27 October 2018 · Extract B: https://www.theguardian.com/business/2019/jan/03/falling-dollar-reflects-global-concern-all-is-

In the extracts: Australia's GDP, Australian, Chinese, USA, Annual, Balance, China's, Eurozone, Export, Future

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.