OCR A Level Economics Macroeconomics June 2022 question paper H460/02

1 (a) Using information from the stimulus material, identify two reasons why crowding out may not occur.

Using Fig. 1, explain how savings can promote economic growth.

Using Fig. 2, explain the relationship between the Gini coefficient and economic growth rate.

Using information from the stimulus material, calculate the UK’s 12 month inflation rate in January 2020.

Using information from the stimulus material, evaluate whether setting an inflation rate target is likely to result in low and stable inflation.

Using information from the stimulus material, evaluate whether an increase in national debt

will harm an economy.

2* Poland’s unemployment rate fell from 10.3% in 2013 to 3.3% in 2019 while its inflation rate rose from 0.9% to 2.3% over this period.

Evaluate, with the use of an appropriate diagram(s), whether the Phillips curve is useful for

economic policy makers.

3* In 2020, several governments were considering cutting taxes to get their countries out of recession.

Evaluate, with the use of an appropriate diagram(s), whether a cut in tax rates will end a

recession.

4* In some recent years, Mongolia has experienced high rates of economic growth. In 2019, its government adopted a long term development strategy known as Mongolia’s Sustainable Development Vision 2030.

Evaluate whether a country with a high economic growth rate can achieve sustainable

development.

5* In recent years there has been a rise in protectionism. For example, the US Trump administration argued that higher tariffs on Chinese imports would reduce US unemployment.

Evaluate whether protectionism always reduces unemployment.