AS · June 2024 · Paper 2
Which one of the following best describes an increase in real GDP?
Explain one limitation of using GDP data to compare living standards between developed and developing countries.
Define the term ‘marginal propensity to consume’.
Explain one likely factor that could increase the level of consumption of UK households.
Using the above data, which one of the following represents the value of the multiplier?
Which one of the following can be inferred from the above chart?
With reference to the above chart, explain one likely effect of migration on employment in the UK.
Define the term ‘investment’.
Annotate the aggregate demand (AD) and short-run aggregate supply (SRAS) diagram below to show the likely impact of a fall in business investment on the equilibrium level of real output and the price level.
Diagram needed. Open the original question paper for the diagram
Which one of the following factors might have caused business investment in the UK to fall?
Define the term ‘budget deficit’.
Using the above table, calculate the percentage decrease in budget deficit between March 2016 and March 2019. You are advised to show your working.
Which one of the following will most likely lead to a reduction in the budget deficit?
Case study · UK monetary policy since the Global Financial Crisis of 2008
With reference to Figure 1, explain the term ‘inflation rate’.
Case study · UK monetary policy since the Global Financial Crisis of 2008
Assess the likely impact of an increase in real wages on the UK economy. Use an aggregate demand and aggregate supply diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · UK monetary policy since the Global Financial Crisis of 2008
With reference to the information provided, explain two characteristics of a recession.
Case study · UK monetary policy since the Global Financial Crisis of 2008
Explain one reason why ‘the fall in the exchange rate of the British pound’ (Extract A, line 21) is likely to increase inflation.
Case study · UK monetary policy since the Global Financial Crisis of 2008
Discuss factors, apart from changes in real wages, which the MPC may have considered when changing the base interest rate.
Case study · UK monetary policy since the Global Financial Crisis of 2008
Evaluate whether expansionary demand-side policies lead to conflicts between macroeconomic objectives.
Case study · UK monetary policy since the Global Financial Crisis of 2008
Evaluate whether the MPC has been successful in meeting the UK’s macroeconomic objectives between 2008 and 2019.