International A Level Unit 2, May 2023

Q1 Identify which of these is a leakage out of the circular flow (Investment / Consumption / Savings / Exports).

Q2 Identify which model best shows the trade-off between inflation and joblessness, given Spanish data for 2022.

Q3 Identify the correct statement about a classical LRAS curve and the full employment level of output.

Q4 Identify how rising New Zealand house prices between 2018 and 2021 most likely affected existing homeowners.

Q5 Identify the policy stance shown by the ECB halting and then reversing its asset purchases.

Q6 Deduce what Chinese output and population figures for 2011 and 2021 show about income per head.

Q10 Explain one effect on Vietnam's economy of the large negative output gap forecast for 2022.

Q11 Explain the meaning of deflation, referring to the chart of Rwandan consumer price inflation.

Q7 Explain one consequence for Pakistan's government budget of joblessness rising between 2018 and 2021.

Q8 Draw AD and LRAS curves to show how weaker German business confidence during 2021-22 affects the economy.

Q9 Calculate the MPC when $25bn of extra state spending eventually raises a country's national income by $100bn.

Q12(a) Define the GDP growth rate, as the term is used in the extract on India's economy.

Q12(b) Explain how a trade deficit differs from a trade surplus, using India's monthly trade figures.

Q12(c) Analyse how faster price rises in India could worsen its trade in goods.

Q12(d) Examine how India's heavier spending on imported oil is likely to affect its real output.

Q12(e) Discuss the likely consequences for India's economy of its central bank lifting the base rate.

Q13 Evaluate supply-side measures a government might adopt to raise productivity, given Japan lagging behind the USA.

Q14 Evaluate the costs a chosen economy would bear from a recession, given forecasts of downturns in 2023.