AQA A Level Economics Paper 2: National and international economy June 2019 question paper 7136/2

Using the data in Extract A, calculate the GDP per capita for Costa Rica in 2015/2016 to the nearest dollar.

Explain how the data in Extract A indicate living standards may be higher in the UK than in the USA.

Extract B (lines 8–9) states ‘If injections into an economy’s circular flow of income increase, then this may generate multiple increases in GDP.’

With the help of a diagram, explain how an increase in injections may generate multiple increases in an economy’s GDP.

Extract B (lines 13–15) states ‘If real GDP goes up, the economy is doing well; this is associated with higher incomes, more jobs and higher spending.’

Using the data in the extracts and your knowledge of economics, assess the view that to improve the living standards of their citizens, governments across the world should prioritise achieving economic growth.

Do not answer Context 2 if you have answered Context 1.

Using the data in Extract D (Figure 3), calculate, to the nearest pound, the amount of income tax payable for someone in Scotland earning £13 500.

Explain how the data in Extract D (Figure 2) show that the UK’s public finances have been improving since 2010.

Extract E (lines 11–12) states ‘If growth could be increased, the budget deficit would fall much faster.’

With the help of a diagram, explain why a higher rate of economic growth is likely to reduce the budget deficit.

Extract F (line 1) states ‘In most of the UK, reducing the budget deficit has focused on austerity rather than tax rises.’

Using the data in the extracts and your knowledge of economics, evaluate the view that there is a strong case for significant increases in UK income tax rates.

Explain why the value of a currency may fall in a floating exchange rate system.

Assess the view that a depreciation of the pound against other currencies is likely to improve the UK’s macroeconomic performance.

Explain how the monetary policy transmission mechanism works when the Monetary Policy Committee (MPC) raises Bank Rate.

Evaluate the view that strict rules and regulations on financial markets are essential to help create a more stable economy.

Explain the main causes of a rise in inflation.

Evaluate the view that inflation is always preferable to deflation.