International A Level Unit 2, Oct 2021

Q1 Using a table of US real GDP growth and unemployment in Q1 and Q2 2020, identify the most likely cause of the rise in unemployment. (real wage / demand deficient / structural / seasonal)

Q2 The Bank of England increased quantitative easing by £100 billion in June 2020. Identify the correct description. (reflationary or deflationary monetary or fiscal policy)

Q3 Russian government expenditure rose by 25 billion roubles from Q1 to Q2 2020. Identify the most likely effect, ceteris paribus.

Q4 China's balance of trade is charted month by month between June 2019 and May 2020; which inference fits?

Q5 Select the change with the strongest chance of lifting investment (higher corporation tax / more investment tax relief / a higher central bank rate / higher bank reserve requirements).

Q6 From the 2019 table of GDP and population covering India and Pakistan, compute GDP per capita and pick the right value.

Q10 Brazil's output gap stood at an estimated -5.6% of GDP in Q1 2019; give one economic consequence such a negative gap brings.

Q11 Using the chart of Canadian CPI inflation running from June 2019 to May 2020, set out how disinflation and deflation differ.

Q7 Using the chart of Jamaican unemployment across 2013 to 2020, explain one way that trend probably shapes the economy.

Q8 Australian consumer confidence slid from 91.9 to 75.6 across March and April 2020: use an LRAS and AD diagram to show effects on prices and real output.

Q9 An RM30 billion rise in Malaysian government spending was expected to raise national income by RM150 billion; calculate the marginal propensity to consume, showing workings.

Q12(a) Give the meaning of recession as Extract A uses the word.

Q12(b) Using Figure 2, explain the method by which CPI inflation gets calculated.

Q12(c) Taking Figure 3 with Extract A, examine two ways France's economy is likely affected by how inflation moved during 2020.

Q12(d) Drawing on Extract A, analyse what France's April 2020 trade balance would do to its circular flow of income.

Q12(e) Using Extract A plus your own knowledge, discuss how ECB monetary policy is likely to play out for France's economy.

Q13 Evaluate whether exchange rates dominate what happens to a nation's trade balance, given Cambodia's currency strengthening between 2009 and 2019 even as the trade shortfall widened from 1.6% to 8% of GDP.

Q14 Evaluate whether growth's costs exceed its benefits, given Ethiopia's above-10% annual expansion from 2004 to 2018 alongside heavy deforestation.