AQA A Level Economics Paper 2: National and international economy November 2020 question paper 7136/2

Using the data in Extract A (Figure 1), calculate the mean unemployment rate for the UK from 2007–08 to 2017–18. Give your answer to one decimal place.

Explain how the data in Extract A (Figure 2) show that the UK has had poor real wage growth since 2008.

Extract C (line 19) states: ‘Improving workers’ productivity is the key to increasing real GDP’.

With the help of a diagram, explain how improving productivity should lead to rising real GDP.

Extract B (lines 13–14) states: ‘It can be argued that supply-side reforms have gone too far in creating a highly flexible workforce and the government needs to do more in terms of protecting the nation’s workers ’.

Using the data in the extracts and your knowledge of economics, evaluate the view that free market supply-side reforms to labour markets are beneficial to the UK economy.

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

Using the data in Extract D (Figure 4), calculate how much was spent by the US on imports from China for every $1 it received from exports to China in 2018. Give your answer to two decimal places.

Explain how the data in Extract D (Figure 3) and (Figure 4) show why the US may have decided to implement protectionist policies.

Extract E (lines 10–11) states: ‘US tariffs on $200bn of Chinese imports came into effect in September.’

With the help of a diagram, explain how the imposition of a tariff may affect the volume of imports.

Extract F (lines 17–19) states: ‘Some argue that many developed countries that now champion free trade, only achieved economic prosperity through protectionist policies.’

Using the data in the extracts and your knowledge of economics, assess the view that developing economies, such as Brazil and China, should pursue protectionist policies to achieve greater economic development.

Explain the possible causes of a falling budget deficit.

To what extent do you agree that reducing the budget deficit is more important to the UK’s macroeconomic performance than reducing the current account deficit on its balance of payments? Justify your answer.

Explain how demand-side and supply-side shocks might increase unemployment in an economy.

Evaluate the view that the main objectives of UK government macroeconomic policy can be achieved without conflicting with each other.

Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth.

Evaluate the costs and benefits for a country of joining a currency union, such as the eurozone.