Section A
Case study
Does rising national debt matter?
In the extracts: Gini, Brazil, GDP, Mongolia Indonesia, Turkey UK Brazil, Brazilian, Consumer, Japan
Q1(a)2 marks
Using information from the stimulus material, identify two reasons why crowding out may not occur. 1 2
TopicPublic finances and the role of the state
Q1(b)2 marks
Using Fig. 1, explain how savings can promote economic growth.
TopicEconomic growth and the economic cycle
Q1(c)4 marks
Using Fig. 2, explain the relationship between the Gini coefficient and economic growth rate.
TopicPoverty and inequalityEconomic growth and the economic cycle
Q1(d)2 marks
Using information from the stimulus material, calculate the UK's 12 month inflation rate in January 2020.
TopicMeasuring economic performance
Q1(e)8 marks
Using information from the stimulus material, evaluate whether setting an inflation rate target is likely to result in low and stable inflation.
TopicMeasuring economic performance
Q1(f)12 marks
Using information from the stimulus material, evaluate whether an increase in national debt will harm an economy.
TopicPublic finances and the role of the state
Section B
Q2OptionalEvaluate25 marks
Evaluate, with the use of an appropriate diagram(s), whether the Phillips curve is useful for economic policy makers.
TopicMacroeconomic objectives and policy
Q3OptionalEvaluate25 marks
Evaluate, with the use of an appropriate diagram(s), whether a cut in tax rates will end a recession.
TopicEconomic growth and the economic cycle
Section C
Q4OptionalEvaluate25 marks
Evaluate whether a country with a high economic growth rate can achieve sustainable development.
TopicEconomic growth and the economic cycle
Q5OptionalEvaluate25 marks
Evaluate whether protectionism always reduces unemployment.
TopicInternational trade and exchange ratesMeasuring economic performance
