AS · June 2019 · Paper 2
Define the term ‘injection’ in this context.
Calculate the value of the multiplier based on the data given. You are advised to show your working.
Which one of the following is a likely cause of a decrease in the value of the UK’s multiplier?
Illustrate the shape of the Keynesian long-run AS curve on the diagram below.
Diagram needed. Open the original question paper for the diagram
Explain what is meant by spare capacity in an economy.
Which one of the following is most likely to cause a movement along the AS curve? Changes in:
With reference to the chart above, explain one likely economic effect of the change in the UK unemployment rate between 2012 and 2018.
Which one of the following policies is most likely to reduce the unemployment rate in the UK?
Define the term ‘price level’.
Annotate the diagram above to show the likely impact of government policy to promote business competition on the equilibrium level of real output and price level.
Diagram needed. Open the original question paper for the diagram
Which one of the following is an interventionist supply-side policy?
Which one of the following is the most likely impact of an increase in average UK house prices on existing homeowners?
Using 2014 as the base year, calculate the index number for
Define the term ‘index number’.
Case study · UK inflation and economic growth
With reference to the first paragraph of Extract A and Figure 1, explain how the change in the exchange rate of the pound has ‘contributed to rising inflation’ (Extract A, line 4).
Case study · UK inflation and economic growth
With reference to Extract A, explain two likely economic effects of the higher rate of UK inflation.
Case study · UK inflation and economic growth
With reference to the last paragraph of Extract A and Figure 2, explain one reason why it is necessary to regularly update the CPI basket of goods and services.
Case study · UK inflation and economic growth
With reference to Figure 3, assess the likely impact of the change in the value of exports, since mid-2016, on the economic growth of the UK. Use an aggregate demand and aggregate supply diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · UK inflation and economic growth
With reference to Figure 4, Extract B and your own knowledge, discuss the limitations of using GDP data to compare living standards between the UK and developing countries.
Case study · UK inflation and economic growth
Evaluate the use of interest rate changes as a means of controlling UK inflation.
Case study · UK inflation and economic growth
Evaluate the potential conflicts between the objective of economic growth and two other UK macroeconomic objectives.