Section A
Q11 mark
1 Which one of the following illustrates the conflict between the macroeconomic objectives of a low rate of inflation and a low rate of unemployment?
- AA long-run classical AS curve
- BAn AD curve
- CA short-run Phillips curve
- DA SRAS curve
Show the answer
The answer is C.
TopicMacroeconomic objectives and policy conflicts
Q21 mark
Which one of the following describes this cause of unemployment?
- ADemand deficient
- BFrictional
- CSeasonal
- DStructural
Show the answer
The answer is B.
TopicMacroeconomic objectives and policy conflicts
Q31 mark
Ceteris paribus, which one of the following can be deduced from this information?
- AThere will be a net withdrawal from the circular flow of income
- BThere will be a net injection into the circular flow of income
- CThere will be a balance of trade deficit
- DThere will be a balance of trade surplus
Show the answer
The answer is A.
TopicNational income, the circular flow and the multiplier
Q41 mark
Which one of the following is the most likely reason for this trend in France's balance of trade in goods and services?
- AAn increase in the savings ratio
- BAn increase in relative productivity
- CAn increase in the exchange rate
- DAn increase in the quality of exports
Show the answer
The answer is C.
TopicMeasures of economic performance
Q51 mark
Which one of the following is the most likely impact of an increase in asset purchases (quantitative easing)?
- AA decrease in the availability of credit
- BA decrease in the rate of inflation
- CAn increase in the rate of unemployment
- DAn increase in the money supply
Show the answer
The answer is D.
TopicFiscal, monetary and supply-side policy
Q61 mark
Which one of the following represents the index number for 2020, if 2018 is the base year?
- A90.37
- B93.71
- C106.72
- D110.65
Show the answer
The answer is D.
TopicMeasures of economic performance
Section B
Q7Explain4 marks
With reference to the chart, explain one likely effect of this trend in the rate of inflation.
Mark splitKnowledge 1Application 1Analysis 2
TopicMeasures of economic performance
Q8Draw4 marks
Based on this information, draw an AD and LRAS diagram to show the likely impact of this fall in house prices on the price level and real output in the Philippines.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Q9Calculate4 marks
Calculate the change in Canada's balance of trade between 2019 and 2020. Show your workings.
Mark splitKnowledge 1Application 3
TopicMeasures of economic performance
Q10Explain4 marks
With reference to this information, explain one likely macroeconomic impact of an increase in the base interest rate.
Mark splitKnowledge 1Application 1Analysis 2
TopicFiscal, monetary and supply-side policy
Q11Explain4 marks
With reference to the table, explain what is meant by 'gross investment'.
Mark splitKnowledge 2Application 2
TopicAggregate demand
Section C
Case study
The UK economy
Extracts: Figure 1: Index of productivity for selected countries (2010=100), 2010 to 2020 · Figure 2: UK net migration, 2010 to 2019 · Extract A: Low productivity · Figure 1: and Extract A adapted from FT, https://www.ft.com/content/e7a8cb3a-efcc-4d62-962b-d284545c14f6 · Figure 2: adapted from https://www.migrationwatchuk.org/statistics-net-migration-statistics
In the extracts: UK Germany USA, European Union, UK Governments, UK's, Index, Net, They
Q12(a)Define2 marks
Define the term 'net migration' (Extract A, line 13).
Mark splitKnowledge 2
TopicEconomic growth
Q12(b)Analyse6 marks
With reference to Figure 2 and Extract A, analyse two possible impacts of net migration on the UK economy.
Mark splitKnowledge 2Application 2Analysis 2
TopicEconomic growth
Q12(c)Explain4 marks
With reference to Figure 1, explain the term 'productivity'.
Mark splitKnowledge 2Application 2
TopicEconomic growth
Q12(d)Examine8 marks
Examine two likely macroeconomic effects of 'significant wage increases' (Extract A, line 21) on the UK economy.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicMeasures of economic performance
Q12(e)Discuss14 marks
Discuss supply-side policies that the UK Government could use to increase productivity.
Mark splitEvaluation 6
TopicFiscal, monetary and supply-side policy
Section D
Q13OptionalEvaluate20 marks
Evaluate the limitations of using GDP data to compare living standards between countries.
Mark splitEvaluation 8
TopicMeasures of economic performance
Q14OptionalEvaluate20 marks
Evaluate the potential conflicts between the objective of economic growth and two other macroeconomic objectives. Refer to a country of your choice in your answer.
Mark splitEvaluation 8
TopicMacroeconomic objectives and policy conflicts
