International A Level Unit 2, Oct 2019

Q1 Choose which two variables the short-run Phillips curve sets against each other (growth and inequality; inflation and unemployment; growth and the environment; inflation and inequality).

Q2 Ghana's growth rose from 3.6% to 8.5%; pick the likely result (more unemployment; less investment; better living standards; smaller tax revenue).

Q3 Besides UK spending on the HS2 railway, select the other item that injects money into the circular flow (imports; exports; saving; income tax receipts).

Q4 Brazil produced below potential in 2017; choose what typically accompanies a negative output gap (high unemployment; strong business confidence; rising house prices; greater wellbeing).

Q5 From an AD and LRAS diagram, select the likeliest reason aggregate demand shifted (lower government spending; dearer borrowing; weaker net exports; higher consumption).

Q6 Reading a chart of quarterly government budget balances from 2013 to 2018, choose the correct statement about when deficits and surpluses occurred.

Q10 Draw an AD and SRAS diagram showing how Ukraine's 7.8% rise in consumption affects real output and prices.

Q11 Using the US GDP and population data for 2016 and 2017, work out how GDP per head changed, showing workings.

Q7 Explain one way unemployment rates near 37-46% affect government finances in Bosnia and Herzegovina.

Q8 Using Thailand's current account balance as a share of GDP for 2010-17, explain how a deficit differs from a surplus.

Q9 Explain one likely economic effect of the stronger business confidence the UAE has enjoyed since its growth picked up in 2012.

Q12(a) Give the meaning of the Argentinian central bank's base interest rate, as shown in the figure.

Q12(b) Explain what a recession is, referring to Argentina's quarterly growth figures.

Q12(c) Analyse one way the weakening peso could affect Argentina's current account, using the second extract.

Q12(d) Examine how rapid inflation is likely to affect Argentina's households and firms, drawing on the figures and extracts.

Q12(e) Discuss the policy options Argentina's government has for raising consumer spending, using both extracts.

Q13 Evaluate how far productivity drives a country's growth rate, given French and German productivity leads over the UK from 2007 to 2016.

Q14 Evaluate supply-side measures such as education and training spending for cutting South Africa's 27.7% unemployment rate.