AQA A Level Economics Paper 2: National and international economy June 2025 question paper 7136/2

Using the data in Extract A (Figure 1), calculate how the value of the Norwegian krone has changed compared to the Singapore dollar between 26 October 2021 and 29 May 2023.

Give your answer as a percentage and to one decimal place.

Explain how the data in Extract A (Figure 2) show that Singapore may have benefitted from managing its exchange rate compared to Germany and Norway.

Extract B (lines 6–7) states: ‘Some analysts hope that, before long, the currency will start to appreciate which could help Norway reduce inflation.’

With the help of a suitable diagram, explain how an appreciation of the krone could help Norway reduce inflation.

Extract C (lines 1–2) states: ‘An economy that has seen considerable success by intervening in the foreign exchange market to manage its currency is Singapore.’

Using the data in the extracts and your knowledge of economics, assess the view that an economy is likely to perform better with a managed exchange rate rather than a freely floating exchange rate.

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

Using the data in Extract D (Figure 3), calculate the difference between the percentage increase in GDP for Japan and the USA between 2001 and 2023.

Give your answer to one decimal place.

Explain how the data in Extract D (Figure 3) show how Ethiopia has developed at a faster rate than Japan since 2001.

Extract E (lines 15–17) states: ‘In recent years, some of the BRICS+ countries, including China and India, have been responsible for large foreign direct investment (FDI) inflows into the G7.’

With the help of a suitable diagram, explain how increased inward foreign direct investment (FDI) can affect a country’s level of employment.

Extract F (lines 1–2) states: ‘While some see the benefits of the emergence of the BRICS+ economies, others are more worried by their rapid economic growth.’

Using the data in the extracts and your knowledge of economics, assess the view that the continued rapid economic growth of the BRICS+ economies is likely to be damaging to the macroeconomic performance of G7 nations, such as the UK.

Explain factors that may lead to an increase in a country’s national debt as a percentage of GDP.

Assess the view that raising direct taxes to finance an increase in government spending is better than raising indirect taxes.

Explain how supply-side policies can help to achieve a low, stable rate of inflation.

Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance.

Explain the main limitations of using national income data to assess differences in living standards between countries.

Assess the view that economic development in LEDCs is best achieved through interventionist strategies.