International A Level Unit 2, May 2022

Q1 Given a German marginal propensity to consume of 0.4, calculate the value of the multiplier.

Q2 Given the Reserve Bank of India's inflation target and its job as the government's banker, pick another central bank function. (increasing the trade deficit / lender of last resort / achieving national happiness / reducing income equality)

Q3 About 27% of Indonesian part-time workers work fewer hours than they would like. Identify what may be deduced. (high underemployment / high economic inactivity / high unemployment / high inflation)

Q4 Colombia's annual CPI inflation is charted from January 2016 through December 2020; judge which claim about the price level, deflation and disinflation holds.

Q5 Italy spent EUR945.6 billion and received EUR789.3 billion in tax revenue in 2020. Identify the policy that could achieve a balanced budget the following year. (deflationary or reflationary monetary or fiscal policy)

Q6 Using an SRAS and AD diagram for China showing a leftward SRAS shift, identify the most likely cause. (higher energy prices / lower indirect tax rates / more investment in education / less bank lending to consumers)

Q10 Quantitative easing by the UK's central bank reached £895 billion in November 2020, up from £645 billion that March; explain one probable effect on aggregate demand.

Q11 Explain the meaning of an output gap, drawing on Japan's real GDP growth for 2019 and 2020 set beside a 0.5% trend rate.

Q7 Explain one probable driver of the surplus appearing in the chart of Malaysia's monthly trade balance, May 2020 to May 2021.

Q8 With New Zealand recording 153 900 immigrants against 74 200 emigrants to June 2020, use an AD/LRAS diagram to show net migration's effect on prices and output.

Q9 Work out how Angola's population changed, showing workings, from the table of its nominal GDP alongside GDP per capita for 2019 and 2020.

Q12(a) State what 'recession' means, as the word is used in Extract A.

Q12(b) Using Figure 1, set out the meaning of the savings ratio.

Q12(c) Explain analytically two factors that lifted household consumption in quarter 3 of 2020, drawing on the second paragraph of Extract A.

Q12(d) Examine two probable consequences for Australia's economy of the sharp rise in unemployment, drawing on Figure 2 and Extract A.

Q12(e) Discuss which interventionist supply-side measures Australia's government might adopt to lift productivity, drawing on Extract B.

Q13 For a country you choose, evaluate what economic growth costs, given claims that chasing it has brought pollution, climate change and resource overuse.

Q14 Taking a country of your own choosing, evaluate what rapid inflation costs, prompted by US inflation moving from 0.6% to 5.4% over the year to June 2021.