A Level Paper 2, June 2017

Q1(a) From the 2008–2015 UK unemployment chart, name the kind of unemployment behind the 2008–2010 movement. (cyclical / frictional / seasonal / voluntary)

Q1(b) Explain how unemployment's 2013–2015 movement would feed through to the circular flow of income.

Q2(a) Give one explanation for why the table's marginal propensity to save shifts.

Q2(b) Explain what happens to the multiplier when the marginal propensity to save drops, holding everything else constant.

Q2(c) Identify the correct size of the multiplier from the data provided.

Q3(a) Pick the correct description of UK price behaviour from September 2011 to January 2013. (deflation / disinflation / prices falling / money supply falling)

Q3(b) Using the data, set out how UK inflation is measured via the Consumer Prices Index, and bring weights into your reply.

Q4(a) Give one reason UK income inequality has moved the way it has since 2007.

Q4(b) Under perfect income equality, which Gini coefficient value applies? (0 / 0.5 / 1 / 50:50)

Q5(a) Using a table of development data for India and Vietnam, identify which statement can be deduced.

Q5(b) Drawing on the data, explain two drawbacks of the HDI as a tool for comparing development across countries and years.

Q6(a) Using Figure 1, find the euro's percentage movement against the pound between early 2009 and early 2015.

Q6(b) Examine two possible causes of the Eurozone inflation change in Figure 2, using the material supplied plus wider knowledge.

Q6(c) With the euro stronger since mid-2015, assess how that appreciation feeds into the current account in Eurozone countries' balance of payments.

Q6(d) Discuss how far ECB quantitative easing is likely to push Eurozone inflation towards its 2% ceiling, per Extract A.

Q6(e) Discuss whether Eurozone governments can raise growth through a looser fiscal stance and supply-side reform, as Extract A suggests.

Q7 Evaluate how mounting protectionism — 5 700-plus extra tariffs, quotas and administrative barriers since 2008 — hits a developing economy of your choosing.

Q8 Evaluate the macroeconomic fallout when global oil prices slump, as with the drop from $147 a barrel in 2008 to $27 by 2016.