Section A
Q11 mark
1 Which one of the following represents net investment?
- AGross investment minus corporation tax
- BGross investment minus capital depreciation
- CGross investment minus the rate of inflation
- DGross investment minus money supply
Show the answer
The answer is B.
TopicAggregate demand
Q21 mark
Which one of the following best describes the cause of this unemployment in Chad?
- AFrictional unemployment
- BReal wage inflexibility
- CSeasonal unemployment
- DStructural unemployment
Show the answer
The answer is C.
TopicMacroeconomic objectives and policy conflicts
Q31 mark
Which one of the following is the ratio of Qatar's GNI in 2022 to its GNI in 2020?
- A1 : 0.62
- B1 : 1.62
- C1 : 61.99
- D1 : 87.64
Show the answer
The answer is A.
TopicMeasures of economic performance
Q41 mark
4 Which one of the following would cause a leftward shift in a country's short-run aggregate supply (SRAS) curve?
- AA decrease in bank lending to consumers
- BA decrease in the rate of indirect tax
- CAn increase in the price of natural gas
- DAn increase in investment in healthcare
Show the answer
The answer is C.
TopicAggregate supply
Q51 mark
Which one of the following is most likely to be associated with a negative output gap?
- AAn increase in house prices
- BAn increase in the rate of inflation
- CAn increase in business confidence
- DAn increase in unemployment
Show the answer
The answer is D.
TopicMacroeconomic objectives and policy conflicts
Q61 mark
With reference to the above table, which one of the following is most likely to result from this change in consumer confidence between April 2021 and April 2023? Price level Real output
- AFall Fall
- BFall Rise
- CRise Fall
- DRise Rise
Show the answer
The answer is D.
TopicAggregate demand
Section B
Q7Explain4 marks
With reference to the information above, explain one likely macroeconomic impact of this decrease in house prices on existing homeowners.
Mark splitKnowledge 1Application 1Analysis 2
Q8Draw4 marks
Draw an AD/AS diagram to illustrate a positive output gap.
Mark splitKnowledge 1Application 3
TopicEconomic growth
Q9Calculate4 marks
Calculate the value of consumption for this economy in 2023. Show your workings.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Q10Explain4 marks
With reference to the information above, explain the term 'underemployment'.
Mark splitKnowledge 2Application 2
Q11Explain4 marks
With reference to the chart, explain one likely cause of the deficit in Colombia's balance of trade in goods and services.
Mark splitKnowledge 1Application 1Analysis 2
TopicMeasures of economic performance
Section C
Case study
The economy of Brazil
Extracts: Figure 1: Real GDP growth rate, 2018 to 2023 · Figure 2: Annual rate of inflation*, as measured by the consumer price index (CPI), · Figure 3: Government monthly budget balance, real* billion, January 2021 to · Extract A: Economic growth · Figure 1: adapted from https://www.statista.com/statistics/263615/gross-domestic-product-gdp-growth-rate-in-brazil/ · Figure 2: adapted from https://tradingeconomics.com/brazil/inflation-cpi
In the extracts: Central Bank, President Lula, GDP, Brazil's, CPI, Annual, Economic, Government's, Previously
Q12(a)Define2 marks
Define the term 'living standards'.
Mark splitKnowledge 2
TopicMeasures of economic performance
Q12(b)Explain4 marks
With reference to Figure 2, explain the difference between disinflation and inflation.
Mark splitKnowledge 2Application 2
TopicMeasures of economic performance
Q12(c)Examine8 marks
With reference to Figure 2 and Extract A, examine two ways by which the increase in the base interest rate could reduce the rate of inflation.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicFiscal, monetary and supply-side policy
Q12(d)Examine6 marks
With reference to Extract A, examine the impact of a deflationary fiscal policy on Brazil's circular flow of income.
Mark splitKnowledge 2Application 2Analysis 2
TopicFiscal, monetary and supply-side policy
Q12(e)Discuss14 marks
With reference to the information provided, discuss the likely effects on living standards of the supply-side policies proposed by President Lula.
Mark splitEvaluation 6
TopicMeasures of economic performance
Section D
Q13OptionalEvaluate20 marks
Evaluate the likely effects of an increase in the unemployment rate on workers and public finances. Refer to a country of your choice in your answer.
Mark splitEvaluation 8
TopicMeasures of economic performance
Q14OptionalEvaluate20 marks
Evaluate the likely effects of a recession. Refer to a country of your choice in your answer.
Mark splitEvaluation 8
TopicEconomic growth
