AQA A Level Economics Paper 2: National and international economy June 2022 question paper 7136/2

Using the data in Extract A (Figure 1), if 2015 is the base year, calculate the index of Egypt’s real GDP in 2018.

Give your answer to one decimal place.

Explain how the data in Extract A (Figures 1 and 2) show that nations with high and stable economic growth attract rising foreign direct investment (FDI) inflows.

Extract B (lines 18–19) states: ‘FDI can have many benefits. It should create employment, boost long-run economic growth and increase exports.’

With the help of a suitable diagram, explain how a rise in inward foreign direct investment (FDI) may lead to increased exports.

Extract C (lines 13–14) states: ‘Some argue that African governments should be doing more to improve the living standards of their citizens, rather than relying on foreign firms.’

Using the data in the extracts and your knowledge of economics, assess the view that to improve the living standards of their citizens, African nations should pursue policies to attract foreign direct investment (FDI).

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

Using the data in Extract D (Figure 3), calculate the difference between the UK’s and Argentina’s mean unemployment rates over the period 2015 to 2018.

Give your answer to two decimal places.

Explain how the data in Extract D (Figures 3 and 4) show that there may be a short-run trade-off between unemployment and inflation.

Extract E (lines 7–9) states: ‘It was hoped that policy measures, including a reduction in tariffs... would help to reduce inflation’.

With the help of a diagram, explain how a reduction in tariffs could help to reduce inflation.

Extract E (lines 15–17) states: ‘Policies were put in place to reduce the money supply and reduce government spending. The control of inflation became the main target of UK government macroeconomic policy.’

Using the data in the extracts and your knowledge of economics, evaluate the view that achieving a low and stable rate of inflation should be the main economic objective of governments.

Explain how expenditure-switching policies can be used to reduce a deficit on a country’s balance of trade in goods and services.

Assess the view that floating exchange rates are always better than fixed exchange rates.

Explain the main problems for an economy of having a large positive output gap.

Evaluate the view that supply-side improvements in the UK economy can best be achieved through the use of interventionist policies.

Explain reasons for changes in the value of exports from the UK to the rest of the world.

Evaluate the view that international trade always benefits nations.