International A Level Unit 2, Jan 2020

Q1 Mongolia has higher unemployment in winter when demand for agricultural labour falls. Identify the type of unemployment. (seasonal / real wage inflexibility / structural / demand deficiency)

Q2 Using a table of people in employment in Jordan in January 2017 and January 2018, calculate the percentage change.

Q3 Uzbekistan's real GDP rose 8% in 2017. Identify the most likely benefit of economic growth. (environmental damage / improved public services / a negative output gap / lower tax revenues)

Q4 Using a diagram showing a rightward shift of aggregate demand, identify the most likely combination of interest rate and exchange rate changes that caused it.

Q5 A UK windfarm subsidy and Ethiopian farm investment both count as interventionist supply-side measures; which fourth option matches — deregulation, privatisation, rate cuts or regional policy?

Q6 A chart plots the UK's monthly current account trade balance, May 2017 to May 2018: choose the valid conclusion.

Q10 Turkey lifted its base rate from 12.75% to 24% in 2018: use an AD/LRAS diagram to show long-run effects on demand, prices and output.

Q11 Given a Spanish marginal propensity to consume of 0.72 and an EUR18 billion defence investment, calculate the final increase in GDP, showing workings.

Q7 Lithuania's net migration slid from +1.4% of population in 2003 to -6.1% by 2017; explain one consequence for long-run aggregate supply.

Q8 A chart tracks annual Turkish consumer price changes, August 2013 through August 2018; explain how inflation differs from disinflation.

Q9 Real incomes in the USA grew 1.8% during the twelve months ending September 2018; explain one likely effect on US net trade.

Q12(a) State what 'consumption' means as Extract A uses it — a brief definition worth two marks.

Q12(b) Using Figure 1, explain what the measure 'real GDP growth rate' actually captures about an economy.

Q12(c) Drawing on Extract A, analyse one way Canada's economy could be affected at the macro level by climbing house prices.

Q12(d) Extract B sets out policies aimed at raising wellbeing; examine how effective such government action is likely to be.

Q12(e) Discuss what persistently low investment does to Canada's economy, drawing evidence from Figure 2 and Extract A.

Q13 India's GNI per capita rose from Rs45 326 up to Rs125 089 over 2010-2017 alongside nine of the ten most polluted cities; evaluate rapid growth's costs for one economy.

Q14 In 2018 China raised the threshold below which earnings go untaxed, aiming to lift aggregate demand; evaluate reflationary demand-side policy in an economy you select.