Pearson Edexcel GCE AS Level In Economics

Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy - Performance and Policies Marking scheme June 2023 Mark Scheme (Results) Summer 2022 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy - Performance and Policies Edexcel and BTEC Qualifications Edexcel and BTEC qualifications are awarded by Pearson, the UK’s largest awarding body. We provide a wide range of qualifications including academic, vocational, occupational and specific programmes for employers. For further information visit our qualifications websites at or . Alternatively, you can get in touch with us using the details on our contact us page at Pearson: helping people progress, everywhere Pearson aspires to be the world’s leading learning company. Our aim is to help everyone progress in their lives through education. We believe in every kind of learning, for all kinds of people, wherever they are in the world. We’ve been involved in education for over 150 years, and by working across 70 countries, in 100 languages, we have built an international reputation for our commitment to high standards and raising achievement through innovation in education. Find out more about how we can help you and your students at: Summer 2022 Question Paper Log Number 66111 Publications Code 8EC0_02_2206_MS All the material in this publication is copyright © Pearson Education Ltd 2022 General Marking Guidance • All candidates must receive the same treatment. Examiners must mark the first candidate in exactly the same way as they mark the last. • Mark schemes should be applied positively. Candidates must be rewarded for what they have shown they can do rather than penalised for omissions. • Examiners should mark according to the mark scheme not according to their perception of where the grade boundaries may lie. • There is no ceiling on achievement. All marks on the mark scheme should be used appropriately. • All the marks on the mark scheme are designed to be awarded. Examiners should always award full marks if deserved, i.e. if the answer matches the mark scheme. Examiners should also be prepared to award zero marks if the candidate’s response is not worthy of credit according to the mark scheme. • Where some judgement is required, mark schemes will provide the principles by which marks will be awarded and exemplification may be limited. • When examiners are in doubt regarding the application of the mark scheme to a candidate’s response, the team leader must be consulted. • Crossed out work should be marked UNLESS the candidate has replaced it with an alternative response. Question Number Answer Mark 1(a) The only correct answer is C A is not correct because quantitative easing will increase AD and therefore economic growth B is not correct because quantitative easing increases inflationary pressures due to an increase in AD D is not correct because quantitative easing would lead to increase in AD and a fall in the level of unemployment as real output increases (1) Question Number Answer Mark 1(b) Knowledge 1, Application 1, Analysis 1 Knowledge/understanding: 1 mark for, e.g. • Decreases reward for saving (1) • Decreases cost of borrowing (1) • Decreases hot money flows (1) Application: 1 mark for, for e.g. • Cut the UK’s base interest rate from 0.75% to 0.1% in March 2020 (1) • Interest rate decreased by 0.65 percentage points in March 2020 (1) • Interest rate already at a very low level (1) • Cheaper mortgages/loans (1) • Greater R&D spending by firms (1) Analysis: 1 mark for linked development, e.g. • Consumption will increase, AD and inflation rises (1) • Investment will increase as cost of production will decrease, AD and inflation rises (1) • Exchange rate will depreciate and will raise (X-M); therefore AD and inflation rises (1) (3)