International A Level Unit 2, Jan 2023

Q1 Pick the change most likely behind a multiplier dropping from 1.7 to 0.9 (lower marginal propensity to tax / lower marginal propensity to save / higher marginal propensity to consume / higher marginal propensity to import).

Q2 India's real GDP rose 8% in 2021. Identify the most likely cost of economic growth. (lower profits / more environmental damage / lower tax revenues / more investment)

Q3 Name the unemployment type behind the US jump to 14.8% by April 2020 during the pandemic recession (seasonal / structural / demand deficient / frictional).

Q4 Using a chart of Ireland's real GDP per capita from 2014 to 2020, identify the most likely effect of the change. (higher living standards / higher unemployment / lower consumer confidence / lower purchasing power)

Q5 Sri Lanka's central bank raised the base rate from 7.5% to 14.5% in April 2022. Identify the most likely impact, ceteris paribus.

Q6 From Qatar's 2018-2020 Gross National Income table, work out how 2018 GNI compares as a ratio with the 2020 figure.

Q10 UK average house prices rose 11.5% in the year to September 2021 from £258 155; explain one likely macroeconomic impact on existing homeowners.

Q11 Set out the meaning of the savings ratio, using the Latvia chart covering 2016 to 2021.

Q7 Give one probable reason for Austria's trade deficit shown in the monthly balance of trade chart covering October 2020 to September 2021.

Q8 Sketch an AS and AD diagram illustrating the 5.64% negative output gap France recorded in 2020 once consumer spending slumped.

Q9 Work out, with workings shown, how Bulgaria's GDP shifted between 2015 and 2020 from the table of population and GDP per capita.

Q12(a) Give the meaning of 'seasonally adjusted' as used in Figure 1.

Q12(b) Using Figure 2, set out how disinflation differs from deflation.

Q12(c) Draw on Extract A to analyse two functions performed by a central bank.

Q12(d) Examine how weaker business confidence might affect Germany's real output, drawing on Figure 1 and Extract A.

Q12(e) Using the supplied material, discuss what rapid inflation is likely to do to Germany's macroeconomy.

Q13 Evaluate whether steep world oil prices must always damage a nation's macroeconomy, after crude went from $39 a barrel in May 2020 to $106 in March 2022.

Q14 For a country you select, evaluate policy options for lifting employment, noting Australia's slide from 63% to 61.5% during late 2021.