International A Level Unit 2, Jan 2022

Q1 Identify what Purchasing Power Parity actually compares (living standards and real income / a basket of similar goods and services / inflation over successive years / one currency priced against the US dollar)

Q2 Using a table of Bahrain's Gross National Income from 2017 to 2019, calculate the index number for 2019 with 2017 as the base year.

Q3 Select the change that would shrink a nation's multiplier (higher marginal propensity to import / lower marginal propensity to tax / higher marginal propensity to consume / lower marginal propensity to save)

Q4 Read off a valid conclusion from the chart of Egypt's monthly net trade position, which runs from early 2019 to late 2020.

Q5 The Dutch savings ratio rose from 15.3% to 24.3% during 2020. Identify the most likely effect, ceteris paribus.

Q6 Canada's real GDP growth for 2017 to 2019 is set beside an estimated 2.7% trend rate; establish what this implies for the output gap.

Q10 With reference to a chart of Turkish house price growth from October 2019 to October 2020, explain one likely macroeconomic impact of rising house prices on existing homeowners.

Q11 Explain the concept of net migration, given Australia recorded 509 600 arrivals against 315 200 departures in the year ending June 2020.

Q7 With reference to a table of 2020 changes to the UK CPI basket, explain one reason why the basket must be updated regularly.

Q8 Use an AD/SRAS diagram to trace real output and the price level in Japan after gas slid from $5.60 to $1.66 a cubic foot (January 2014-September 2020).

Q9 Using a table of Argentina's nominal GDP and population in 2018 and 2019, calculate the change in GDP per capita, showing workings.

Q12(a) State what real GDP means, as plotted in Figure 1.

Q12(b) Drawing on Figure 2, distinguish deflation from disinflation.

Q12(c) Analyse two factors shaping eurozone investment levels, using Figure 1 together with Extract A's opening paragraph.

Q12(d) Examine what a stronger euro against the US dollar, as Extract A notes, would probably do to eurozone net trade.

Q12(e) Discuss the macroeconomic consequences for the eurozone of ECB monetary policy, using the extracts and your wider study.

Q13 Assess how pursuing economic growth may clash with two further macroeconomic aims, given China's pollution dropped 10.8% during slower growth in early 2020.

Q14 Evaluate supply-side policies the Indian government could use to raise productivity (context: productivity up 5.2% in 2019 against the 6.3% needed for an 8% GDP growth target).