A Level Paper 2, June 2023

Q1(a) Use an AD/AS diagram to show how the September 2022 UK base rate move from 1.75% to 2.25% might affect prices and output.

Q1(b) Pick the fall most likely to follow a rise in the base rate (demand-pull inflation / saving propensity / cyclical unemployment / sterling's dollar value).

Q2(a) Select the correct statement from a chart tracking UK unemployment between December 2020 and June 2022.

Q2(b) Using that unemployment chart, give one plausible explanation for the way Britain's jobless rate shifted.

Q3(a) Using UK real GDP data for 2020–2022, calculate the value of total forecast GDP in 2022.

Q3(b) Set out one cost arising from the 9.9% drop in UK real GDP during 2020.

Q3(c) Choose the rise most likely to raise potential economic growth (consumption / input and energy costs / income tax / technology).

Q4(a) Identify which item counts as consumption (building a cycle lane / Heathrow expansion / school buildings / buying clothes).

Q4(b) Using UK consumption-to-GDP data for 2004–2021, explain how a weaker marginal propensity to consume affects real GDP, bringing the multiplier into your answer.

Q5(a) Given 2021 US GDP of $23 trillion and national debt of $28.4 trillion, calculate the US national debt as a percentage of GDP.

Q5(b) Explain how running a budget deficit each year feeds into the size of the national debt.

Q5(c) Select what a larger US national debt would most likely increase (crowding out / inequality / poverty / unemployment).

Q6(a) Using Extract A on the African Continental Free Trade Area, set out what a regional trade agreement means.

Q6(b) Examine two reasons why moving goods across African borders proves so expensive, drawing on Extract A.

Q6(c) Discuss the way better transport connections between African nations could alter their rates of economic growth.

Q6(d) Using Extract B, assess two ways Angola could gain from having its debts written down.

Q6(e) Discuss the market-orientated strategies available to Angola's government for raising the country's level of development.

Q7 Evaluate which macroeconomic policies might strengthen UK export competitiveness, given a 14% fall in exports since 2020 and a slide to 23rd worldwide.

Q8 Evaluate non-monetary macroeconomic options open to the UK government for bringing inflation down, with CPI at 10.1% in the year to July 2022.