International A Level Unit 2, Jan 2021

Q1 Choose, from four AD/AS diagrams, the one depicting an economy where potential economic growth is occurring.

Q2 A table gives South Korea's producer price index changes year-on-year across July to September 2019; state the effect this most likely produces.

Q3 Which change would most likely worsen a developed economy's trade balance: falling real incomes, stronger non-price competitiveness, a weaker trading partner, or an appreciating currency?

Q4 Using a chart of Portugal's quarterly household savings ratio from 2014 to 2019, identify what is most likely to have risen according to the long-term trend. (consumption / exports / unemployment / withdrawals)

Q5 Select the correct statement on the Keynesian LRAS curve, with options about its elasticity at full employment versus when spare capacity is large.

Q6 Using a table of an economy's injections and withdrawals in one year, identify what can be concluded about the budget balance, trade balance and net injection or withdrawal.

Q10 After the US President attacked the central bank in August 2019, outline one function that a central bank performs.

Q11 With reference to a chart of two IMF estimates of the French output gap from 1994 to 2017, explain one reason why an output gap is difficult to measure.

Q7 With reference to a chart of Ukraine's real economic growth rate from 2013 to 2018, explain the difference between positive and negative economic growth rates.

Q8 Productivity in Brazil dropped more than 40% from early 2012 to mid-2019: use an AD and LRAS diagram to show effects on prices and output.

Q9 Using a table of average personal disposable income in China from 2014 to 2018, calculate an index number for 2014 with 2018 as the base year, showing workings.

Q12(a) State what Purchasing Power Parity (PPP) means, as the measure is used in Figure 1.

Q12(b) Using Figure 1, distinguish GDP per capita from GNI per capita.

Q12(c) Analyse two weaknesses of GNI per capita PPP figures when judging Philippine living standards from 2000 to 2018, using Figure 1.

Q12(d) Examine two drivers behind forecasts of growth in the Philippines over 2019 to 2021, drawing on Extract A.

Q12(e) Discuss, with suitable diagrams and Extract A, whether supply-side measures could lift economic growth in the Philippines.

Q13 Thailand's GDP per capita doubled with happiness rising 2008-2018, while India's grew 80% as happiness fell: evaluate whether meeting macroeconomic objectives lifts national wellbeing.

Q14 Oil fell to $31 a barrel by May 2020 from $63 in January: evaluate the claim that cheaper global oil always helps a country's macroeconomy.