International A Level Unit 2, May 2021

Q1 380 000 of the 800 000 UK graduates in 2019 started jobs not requiring a degree. Identify the concept. (underemployment / unemployment / real wage inflexibility / economic inactivity)

Q2 Brazil's annual inflation rate is given for each month from April to August 2019; determine what this reveals about the price level, disinflation and deflation.

Q3 South African government expenditure rose from 31.4% to 34.6% of GDP between 2012 and 2019. Identify the most likely contributor. (lower welfare payments / a lower exchange rate / less economic activity / increased business confidence)

Q4 A diagram plots actual growth against the trend rate for one economy; say what this indicates about unemployment, output gaps and recovery.

Q5 Japanese private sector investment rose 1.9% in Q2 2019. Identify the most likely cause. (slower growth / higher indirect tax / higher corporation tax / lower interest rates)

Q6 Given a Danish marginal propensity to consume of 0.49, calculate the value of the multiplier.

Q10 With reference to a table of Belgium's quarterly real GDP growth through 2019, explain what is meant by 'growth of real GDP'.

Q11 From 2018 data on US expenditure components, work out American aggregate demand, holding other things equal (ceteris paribus).

Q7 With France granting EUR5 billion of tax relief to encourage business investment, explain one probable economic consequence.

Q8 Average real house prices in Sydney fell 15% in Q1 2019; explain one possible impact on the level of consumption.

Q9 Oil climbed from $29.78 to $66.83 per barrel (Jan 2016–May 2019): diagram the AD shift for oil-exporting Saudi Arabia and its price-level and real-output effects.

Q12(a) State what 'monetary policy' means, as the term appears in Extract A (brief definition).

Q12(b) Using Extract A, set out what the phrase 'foreign direct investment' refers to.

Q12(c) Examine two ways yearly GDP growth rates might affect ordinary people across East Africa, drawing on Figure 1 and Extract A.

Q12(d) Analyse a single macroeconomic consequence for East African economies of the shift in current account balance relative to GDP, per Figure 2.

Q12(e) Discuss what interventionist supply-side policies are likely to achieve in East Africa, using Extracts A and B.

Q13 Evaluate how far fiscal instruments can raise growth (context: in 2019 the ECB President urged eurozone governments towards tax cuts and higher spending).

Q14 Evaluate how higher unemployment affects workers, government finances and use of resources (context: South Africa's rate climbing 27.6% to 29% across Q1–Q2 2019).