Section A
Case study
Changing economic conditions in Kenya
In the extracts: Kenya, IDA, Kenyans, GDP, USA, International Development Association, Human Development Reports, Democratic Republic, Kenya Bangladesh, Unemployment
Q1(a)2 marks
Using information from the stimulus material, identify two components of Kenya's aggregate demand. Component 1 Component 2
Mark splitApplication 2
TopicAggregate demand
Q1(b)1 mark
Using information from the stimulus material, calculate to one decimal place Kenya's terms of trade in 2019.
Mark splitApplication 1
TopicInternational trade and exchange rates
Q1(c)Explain3 marks
Explain if the relationship in Fig. 1 between IDA assistance per capita and GDP per capita is the expected one.
Mark splitKnowledge 2Application 1
TopicMeasuring economic performance
Q1(d)4 marks
Using Table 1, explain the relationship between mean years of schooling and life expectancy.
Mark splitKnowledge 2Application 2
TopicGrowth and development
Q1(e)8 marks
Using information from the stimulus material, evaluate whether the increase in Kenya's government spending is likely to increase the government's budget deficit.
Mark splitKnowledge 1Application 1Analysis 3Evaluation 3
TopicMacroeconomic objectives and policyAggregate demand
Q1(f)12 marks
Using information from the stimulus material, evaluate whether Kenyans are likely to benefit from globalisation.
Mark splitKnowledge 1Application 1Analysis 5Evaluation 5
TopicInternational trade and exchange rates
Section B
Q2OptionalEvaluate25 marks
Evaluate, with the use of an appropriate diagram(s), whether advances in technology will help a government to achieve its macroeconomic policy objectives.
Mark splitKnowledge 6Application 6Analysis 6Evaluation 7
TopicMacroeconomic objectives and policy
Q3OptionalEvaluate25 marks
Evaluate, with the use of an appropriate diagram(s), whether improved economic expectations will benefit an economy.
Mark splitKnowledge 6Application 6Analysis 6Evaluation 7
Section C
Q4OptionalEvaluate25 marks
Evaluate whether fiscal policy can reduce poverty.
Mark splitKnowledge 6Application 6Analysis 6Evaluation 7
TopicMacroeconomic objectives and policy
Q5Optional25 marks
In 2021, the Economic Affairs Committee of the House of Lords in the UK published a report which questioned whether the Bank of England was addicted to using quantitative easing as a monetary policy measure. Evaluate whether quantitative easing is an effective monetary policy measure.
Mark splitKnowledge 6Application 6Analysis 6Evaluation 7
TopicMacroeconomic objectives and policy
