Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Monday 18 May 2026
Afternoon (Time: 2 hours) Paper
reference 9EC0/02
Economics A
Advanced
PAPER 2: The National and Global Economy
You must have: Total Marks
Source Booklet (enclosed)
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 100.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
Turn over
P79936A
©2026 Pearson Education Ltd.
P:1/1/1/1/1
*P79936A0132*
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross .
You are advised to spend 30 minutes on this section.
Use the data to support your answers where relevant. You may annotate and
include diagrams in your answers.
1 In December 2023, President Biden announced $8.2 billion in new funding for 10
major passenger rail projects across the USA. This includes building the USA’s first
high-speed rail system, between California and Nevada, which will serve more than
11 million passengers annually.
(Source: adapted from https://www.whitehouse.gov)
(a) Draw an aggregate demand and aggregate supply diagram to illustrate the
impact of this government spending on price level and real output.
(4)
2
*P79936A0232*
, (b) Which one of the following is most likely to cause an increase in long-run
aggregate supply?
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
An increase in:
(1)
A direct taxes
B income tax
C interest rates
D spending on education
(Total for Question 1 = 5 marks)
3
*P79936A0332* Turn over
, 2 In February 2024 Kenya’s currency, the shilling, rose to its highest level against the
US dollar since June 2023. To counteract this, Kenya’s central bank intervened in the
foreign exchange market, purchasing US dollars.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(Source: adapted from https://www.reuters.com/world/africa/kenyan-central-
bank-buys-dollars-curb-volatility-shilling-rallies-2024-02-15/)
(a) With reference to the data above, explain the likely impact of this foreign currency
intervention on Kenya’s current account of the balance of payments.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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(b) Which one of the following is most likely to increase the volume of Kenya’s
exports?
An increase in:
(1)
A inflation
B Kenya’s corporation tax
C labour costs
D tourism to Kenya
(Total for Question 2 = 5 marks)
4
*P79936A0432*
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Monday 18 May 2026
Afternoon (Time: 2 hours) Paper
reference 9EC0/02
Economics A
Advanced
PAPER 2: The National and Global Economy
You must have: Total Marks
Source Booklet (enclosed)
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 100.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
Turn over
P79936A
©2026 Pearson Education Ltd.
P:1/1/1/1/1
*P79936A0132*
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross .
You are advised to spend 30 minutes on this section.
Use the data to support your answers where relevant. You may annotate and
include diagrams in your answers.
1 In December 2023, President Biden announced $8.2 billion in new funding for 10
major passenger rail projects across the USA. This includes building the USA’s first
high-speed rail system, between California and Nevada, which will serve more than
11 million passengers annually.
(Source: adapted from https://www.whitehouse.gov)
(a) Draw an aggregate demand and aggregate supply diagram to illustrate the
impact of this government spending on price level and real output.
(4)
2
*P79936A0232*
, (b) Which one of the following is most likely to cause an increase in long-run
aggregate supply?
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
An increase in:
(1)
A direct taxes
B income tax
C interest rates
D spending on education
(Total for Question 1 = 5 marks)
3
*P79936A0332* Turn over
, 2 In February 2024 Kenya’s currency, the shilling, rose to its highest level against the
US dollar since June 2023. To counteract this, Kenya’s central bank intervened in the
foreign exchange market, purchasing US dollars.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(Source: adapted from https://www.reuters.com/world/africa/kenyan-central-
bank-buys-dollars-curb-volatility-shilling-rallies-2024-02-15/)
(a) With reference to the data above, explain the likely impact of this foreign currency
intervention on Kenya’s current account of the balance of payments.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
(b) Which one of the following is most likely to increase the volume of Kenya’s
exports?
An increase in:
(1)
A inflation
B Kenya’s corporation tax
C labour costs
D tourism to Kenya
(Total for Question 2 = 5 marks)
4
*P79936A0432*
