IGCSE Edexcel Economics Paper 2 Macroeconomics Questions
And Answers 2025/2026
Economic growth - CORRECT ANSWER-the increase in the level of output by a
nation and is one of the main macroeconomic objectives
GDP - CORRECT ANSWER-market value of all goods and services produced in a
year
Recession - CORRECT ANSWER-a fall in GDP for two successive quarters
Boom - CORRECT ANSWER-A phase in the economi cycle with the highest levels of
economic activity/with the highest levels of employment
Imports - CORRECT ANSWER-Purchase of goods or services from another country
Exports - CORRECT ANSWER-The sale of goods or services to another country
Inflation - CORRECT ANSWER-A persistent increase in the average price level of
goods and services within an economy
Deflation - CORRECT ANSWER-A persistent fall in the average price level of goods
and services
, Shoe leather costs - CORRECT ANSWER-the cost to firms and consumers of
searching for the lowest prices when inflation is high
Unemployment - CORRECT ANSWER-People are willing and able to work and
actively seeking work but cannot find employment
Seasonal unemployment - CORRECT ANSWER-Seasonal workers are employed at
particular times of the year when the demand for labour is higher than usual,
often associated with industries such as agriculture, tourism
Current account on the balance of payments - CORRECT ANSWER-part of the
balance of payments where flows of savings, investment and currencies in relation
to international trade are recorded
Current account surplus - CORRECT ANSWER-An economy is exporting a greater
value of goods and services than it is importing
Current account deficit - CORRECT ANSWER-when the value of imports exceeds
the value of exports
Income inequality - CORRECT ANSWER-differences in income that exist between
the different groups of earners in the society, i.e. gap between the rich and poor
Absolute poverty - CORRECT ANSWER-where people do not have enough
resources to meet all of their basic human needs
And Answers 2025/2026
Economic growth - CORRECT ANSWER-the increase in the level of output by a
nation and is one of the main macroeconomic objectives
GDP - CORRECT ANSWER-market value of all goods and services produced in a
year
Recession - CORRECT ANSWER-a fall in GDP for two successive quarters
Boom - CORRECT ANSWER-A phase in the economi cycle with the highest levels of
economic activity/with the highest levels of employment
Imports - CORRECT ANSWER-Purchase of goods or services from another country
Exports - CORRECT ANSWER-The sale of goods or services to another country
Inflation - CORRECT ANSWER-A persistent increase in the average price level of
goods and services within an economy
Deflation - CORRECT ANSWER-A persistent fall in the average price level of goods
and services
, Shoe leather costs - CORRECT ANSWER-the cost to firms and consumers of
searching for the lowest prices when inflation is high
Unemployment - CORRECT ANSWER-People are willing and able to work and
actively seeking work but cannot find employment
Seasonal unemployment - CORRECT ANSWER-Seasonal workers are employed at
particular times of the year when the demand for labour is higher than usual,
often associated with industries such as agriculture, tourism
Current account on the balance of payments - CORRECT ANSWER-part of the
balance of payments where flows of savings, investment and currencies in relation
to international trade are recorded
Current account surplus - CORRECT ANSWER-An economy is exporting a greater
value of goods and services than it is importing
Current account deficit - CORRECT ANSWER-when the value of imports exceeds
the value of exports
Income inequality - CORRECT ANSWER-differences in income that exist between
the different groups of earners in the society, i.e. gap between the rich and poor
Absolute poverty - CORRECT ANSWER-where people do not have enough
resources to meet all of their basic human needs
