AQA A Level Economics Paper 2: National and international economy June 2023 question paper 7136/2

Using the data in Extract A (Figure 1), calculate the difference between Ireland’s corporation tax rate and the mean corporation tax rate of the other five European nations.

Give your answer to one decimal place.

Explain how the data in Extract A (Figure 2), show that Ireland’s economy performed better than the economies of France and Spain in 2021.

Extract C (line 13) states: ‘High economic growth rates allowed Ireland to run a budget surplus in 2018 and 2019.’

With the help of a diagram, explain how high economic growth could help to create a budget surplus.

Extract B (lines 1–3) states: ‘Ireland has dropped its low-tax policy of the past 18 years, which had helped to persuade some of the world’s biggest companies, including Google and Facebook, to site their European headquarters in Ireland.’

Using the data in the extracts and your knowledge of economics, assess the view that a rise in Ireland’s corporation tax rate is likely to have a damaging effect on its macroeconomic performance.

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

Using the data in Extract D (Figure 3), calculate the value of bonds that had been purchased by November 2020 for every £1 worth of bonds purchased by November 2009. Give your answer in £s and to two decimal places.

Explain how the data in Extract D (Figure 4), show that the growth in quantitative easing (shown in Figure 3) may have been successful in helping the UK achieve its macroeconomic objectives since 2009.

Extract E (lines 4–5) states: ‘…banks in the UK decreased lending, reducing the availability of credit for households and firms. This damaged the real economy and created high unemployment.’ With the help of a diagram, explain how reduced availability of credit from banks may lead to increased unemployment.

Extract F (lines 18–19) states: ‘Some say that the use of QE is a dangerous addiction and its overuse can lead to problems in the future.’ Using the data in the extracts and your knowledge of economics, assess the view that the continued use of quantitative easing (QE) is damaging for the UK economy.

Explain the main causes of globalisation.

Assess the view that increased globalisation has been beneficial for the UK economy.

Explain the possible causes of a shift in the short-run aggregate supply curve to the left.

Evaluate how, in the long-run, governments could try to reconcile conflicts between the various objectives of economic policy.

Explain possible causes of economic growth.

Evaluate the view that economic growth usually leads to an improvement in living standards.