AQA_2024: AS Economics - Paper 2
The National Economy in a Global Context.
(Merged Question Paper and Marking Scheme)
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signatu re
I declare this is my own work.
AS
ECONOMICS
Paper 2 The National Economy in a Global Context
Monday 20 May 2024 Morning Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
the Insert Section Mark
a calculator.
A
Instructions B
Use black ink or black ball-point pen. Pencil should only be used for drawing. TOTAL
Fill in the boxes at the top of this page.
Answer all questions in Section A.
Answer either Context 1 or Context 2 in Section B.
You will need to refer to the Insert provided to answer Section B.
You must answer the questions in the spaces provided. Do not write outside
the box around each page or on blank pages.
If you need extra space for your answer(s), use the lined pages at the end of
this book. Write the question number against your answer(s).
Do all rough work in this book. Cross through any work you do not want to be
marked.
Information
The maximum mark for this paper is 70.
The marks for questions are shown in brackets.
No deductions will be made for wrong answers.
,For AS Economics Paper 2: The National Economy in a Global Context, here’s a concise revision guide
focusing on the key areas to cover:
1. Macroeconomic Objectives:
Economic Growth: The increase in the output of goods and services over time, measured by GDP.
o Actual Growth: Increase in real GDP due to higher utilization of resources.
o Potential Growth: Increase in the productive capacity of the economy (e.g., due to investment in
capital or technology).
Full Employment: When all who are willing and able to work at the prevailing wage rate can find a job.
It's not the same as 0% unemployment (due to frictional unemployment).
Price Stability (Inflation Control): Keeping inflation low and stable. High inflation erodes purchasing
power, while deflation can lead to decreased economic activity.
Balance of Payments Stability: Ensuring the economy does not run excessive current account deficits or
surpluses. The current account includes trade balance (exports minus imports), income flows, and
transfers.
Income Distribution: Achieving a fair distribution of income and wealth, often requiring redistributive
policies (e.g., taxation, welfare).
2. Economic Growth and the Business Cycle:
Business Cycle: The periodic fluctuations in national output (GDP). It includes phases of:
o Expansion: Period of rising GDP, decreasing unemployment.
o Peak: The economy operates at full capacity.
o Recession: A slowdown in economic activity, often leading to rising unemployment.
o Trough: The lowest point of the cycle, signaling the start of a recovery.
Demand-Side and Supply-Side Growth:
o Demand-Side Growth: Stimulated by increases in aggregate demand (consumer spending,
government expenditure, investment, and net exports).
o Supply-Side Growth: Achieved by improving productivity through factors like technological
advancements, capital investment, and education.
3. Inflation:
Demand-Pull Inflation: Caused by an increase in aggregate demand exceeding aggregate supply,
resulting in higher prices.
Cost-Push Inflation: Occurs when production costs rise, often due to higher raw material costs or wages,
which pushes prices up.
Measuring Inflation:
o Consumer Price Index (CPI): A measure of the average price level of a basket of goods and
services commonly consumed by households.
o Retail Price Index (RPI): Includes housing costs like mortgage interest payments and rents, in
addition to CPI.
Effects of Inflation:
o Wages and Savings: Erodes the value of money, reducing purchasing power and affecting
savings.
o Interest Rates: Central banks may raise interest rates to control high inflation, which increases
the cost of borrowing.
IB/M/Jun24/G4002/E5 7135/2
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Which one of the following is a measure of productivity?
[1 mark]
A Employment divided by output
B Output of goods per worker
C Production multiplied by quantity of labour
D Volume of goods produced
0 2 Between 2021 and 2022, the weight applied to the restaurant and hotels sector in the
Consumer Prices Index rose from 97 to 102.
As a result of this change, it must be true that
[1 mark]
A average prices in the restaurant and hotels sector rose by just over 5%
between 2021 and 2022.
B restaurant and hotel prices rose by less than the overall average for
consumer prices in 2021.
C the proportion of average consumer expenditure relating to restaurants and
hotels rose in 2022.
D total consumer expenditure on restaurant and hotel services was higher in
2022 than in 2021.
IB/M/Jun24/7135/2
, 3
Do not write
outside the
0 3 Table 1 shows selected data for a country for 2022 and 2023. box
Table 1
2022 2023
Exports ($bn) 10 12
Government spending ($bn) 12 14
Investment ($bn) 40 38
The country’s national income was in equilibrium in 2022 and 2023. All other things being
equal, which one of the following is most likely to have occurred in this country in 2023 to
maintain equilibrium national income?
[1 mark]
A A decrease in tax revenue
B A fall in the value of imports
C A rise in the budget deficit
D An increase in savings
0 4 An aggregate demand and short-run aggregate supply diagram is used to illustrate the
effect of a rise in imports of goods and services into an economy. All other things being
equal, which one of the following would be shown on the diagram?
[1 mark]
A A leftward movement along the aggregate demand curve
B A leftward movement along the short-run aggregate supply curve
C A rightward shift of the aggregate demand curve
D A rightward shift of the short-run aggregate supply curve
Turn over ►
IB/M/Jun24/7135/2
The National Economy in a Global Context.
(Merged Question Paper and Marking Scheme)
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signatu re
I declare this is my own work.
AS
ECONOMICS
Paper 2 The National Economy in a Global Context
Monday 20 May 2024 Morning Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
the Insert Section Mark
a calculator.
A
Instructions B
Use black ink or black ball-point pen. Pencil should only be used for drawing. TOTAL
Fill in the boxes at the top of this page.
Answer all questions in Section A.
Answer either Context 1 or Context 2 in Section B.
You will need to refer to the Insert provided to answer Section B.
You must answer the questions in the spaces provided. Do not write outside
the box around each page or on blank pages.
If you need extra space for your answer(s), use the lined pages at the end of
this book. Write the question number against your answer(s).
Do all rough work in this book. Cross through any work you do not want to be
marked.
Information
The maximum mark for this paper is 70.
The marks for questions are shown in brackets.
No deductions will be made for wrong answers.
,For AS Economics Paper 2: The National Economy in a Global Context, here’s a concise revision guide
focusing on the key areas to cover:
1. Macroeconomic Objectives:
Economic Growth: The increase in the output of goods and services over time, measured by GDP.
o Actual Growth: Increase in real GDP due to higher utilization of resources.
o Potential Growth: Increase in the productive capacity of the economy (e.g., due to investment in
capital or technology).
Full Employment: When all who are willing and able to work at the prevailing wage rate can find a job.
It's not the same as 0% unemployment (due to frictional unemployment).
Price Stability (Inflation Control): Keeping inflation low and stable. High inflation erodes purchasing
power, while deflation can lead to decreased economic activity.
Balance of Payments Stability: Ensuring the economy does not run excessive current account deficits or
surpluses. The current account includes trade balance (exports minus imports), income flows, and
transfers.
Income Distribution: Achieving a fair distribution of income and wealth, often requiring redistributive
policies (e.g., taxation, welfare).
2. Economic Growth and the Business Cycle:
Business Cycle: The periodic fluctuations in national output (GDP). It includes phases of:
o Expansion: Period of rising GDP, decreasing unemployment.
o Peak: The economy operates at full capacity.
o Recession: A slowdown in economic activity, often leading to rising unemployment.
o Trough: The lowest point of the cycle, signaling the start of a recovery.
Demand-Side and Supply-Side Growth:
o Demand-Side Growth: Stimulated by increases in aggregate demand (consumer spending,
government expenditure, investment, and net exports).
o Supply-Side Growth: Achieved by improving productivity through factors like technological
advancements, capital investment, and education.
3. Inflation:
Demand-Pull Inflation: Caused by an increase in aggregate demand exceeding aggregate supply,
resulting in higher prices.
Cost-Push Inflation: Occurs when production costs rise, often due to higher raw material costs or wages,
which pushes prices up.
Measuring Inflation:
o Consumer Price Index (CPI): A measure of the average price level of a basket of goods and
services commonly consumed by households.
o Retail Price Index (RPI): Includes housing costs like mortgage interest payments and rents, in
addition to CPI.
Effects of Inflation:
o Wages and Savings: Erodes the value of money, reducing purchasing power and affecting
savings.
o Interest Rates: Central banks may raise interest rates to control high inflation, which increases
the cost of borrowing.
IB/M/Jun24/G4002/E5 7135/2
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Which one of the following is a measure of productivity?
[1 mark]
A Employment divided by output
B Output of goods per worker
C Production multiplied by quantity of labour
D Volume of goods produced
0 2 Between 2021 and 2022, the weight applied to the restaurant and hotels sector in the
Consumer Prices Index rose from 97 to 102.
As a result of this change, it must be true that
[1 mark]
A average prices in the restaurant and hotels sector rose by just over 5%
between 2021 and 2022.
B restaurant and hotel prices rose by less than the overall average for
consumer prices in 2021.
C the proportion of average consumer expenditure relating to restaurants and
hotels rose in 2022.
D total consumer expenditure on restaurant and hotel services was higher in
2022 than in 2021.
IB/M/Jun24/7135/2
, 3
Do not write
outside the
0 3 Table 1 shows selected data for a country for 2022 and 2023. box
Table 1
2022 2023
Exports ($bn) 10 12
Government spending ($bn) 12 14
Investment ($bn) 40 38
The country’s national income was in equilibrium in 2022 and 2023. All other things being
equal, which one of the following is most likely to have occurred in this country in 2023 to
maintain equilibrium national income?
[1 mark]
A A decrease in tax revenue
B A fall in the value of imports
C A rise in the budget deficit
D An increase in savings
0 4 An aggregate demand and short-run aggregate supply diagram is used to illustrate the
effect of a rise in imports of goods and services into an economy. All other things being
equal, which one of the following would be shown on the diagram?
[1 mark]
A A leftward movement along the aggregate demand curve
B A leftward movement along the short-run aggregate supply curve
C A rightward shift of the aggregate demand curve
D A rightward shift of the short-run aggregate supply curve
Turn over ►
IB/M/Jun24/7135/2
