AQA ECONOMICS EXAM SCRIPT 2025/2026 QUESTIONS
AND SOLUTIONS MARKED A+
✔✔Fiscal Policy - ✔✔the manipulation of government spending and taxation to
influence economic activity
✔✔Wealth - ✔✔the stock of assets which have value at a point in time, (as distinct from
income, which is a flow generated over a period of time)
✔✔National wealth - ✔✔the stock of all goods that exist at a point in time that have
value in the economy
✔✔Consumption - ✔✔total planned spending by households on consumer goods and
services produced within the economy
✔✔Closed economy - ✔✔an economy with no international trade
✔✔Saving - ✔✔any monies placed in an official scheme.
✔✔Investment - ✔✔total planned spending by firms on capital goods produced within
the economy
✔✔Open economy - ✔✔an economy open to international trade
✔✔Aggregate demand - ✔✔the total planned spending on real output produced within
the economy
✔✔Aggregate supply - ✔✔the level of real national output that producers are prepared
to supply at different average price levels
✔✔Rate of interest - ✔✔the reward for lending savings to somebody else and the cost
of borrowing
✔✔Availability of credit - ✔✔funds available for households and firms to borrow
✔✔Distribution of income - ✔✔the spread of different incomes among individuals and
different income groups in the economy
✔✔Supply-side Policies - ✔✔Government policies designed to increase the productivity
of the economy and business efficiency
✔✔Seasonal fluctuation - ✔✔variation of economic activity resulting from seasonal
change in the economy
, ✔✔Frictional unemployment - ✔✔unemployment that is usually short term and occurs
when a worker switches between jobs
✔✔Geographical immobility of labour - ✔✔when workers are unwilling or unable to
move from one area to another in search of work
✔✔Occupational immobility of labour - ✔✔when workers are unwilling or unable to
move from one type of job to another, for example because different skills are needed
✔✔Structural unemployment - ✔✔long-term unemployment when some industries are
declining, even though other industries may be growing
✔✔Deindustrialisation - ✔✔the decline of manufacturing industries, together with coal
mining
✔✔Seasonal unemployment - ✔✔unemployment arising in different seasons of the
year, caused by factors such as the weather and the end of the Christmas shopping
period
✔✔Real wage - ✔✔the purchasing power of the nominal (or money) wage; for example,
real wages fall when inflation rises quicker than the rate of a nominal wage
✔✔Real-wage unemployment - ✔✔unemployment caused by real wages being stuck
above the equilibrium real wage
✔✔Voluntary unemployment - ✔✔occurs when workers choose to remain unemployed
and refuse job offers at current market rates
✔✔Involuntary unemployment - ✔✔when workers are willing to work at current market
wage rates but there are no jobs available
✔✔Demand-pull inflation - ✔✔a rising price level caused by an increase in aggregate
demand, shown by a shift if the AD curve to the right.
✔✔Cost-push inflation - ✔✔a rising price level caused by an increase in the costs of
production, shown by a shift of the SRAS curve to the left
✔✔Current account deficit - ✔✔occurs when currency outflows in the current account
exceed currency inflows
✔✔Current account surplus - ✔✔occurs when currency inflows in the current account
exceed currency outflows
AND SOLUTIONS MARKED A+
✔✔Fiscal Policy - ✔✔the manipulation of government spending and taxation to
influence economic activity
✔✔Wealth - ✔✔the stock of assets which have value at a point in time, (as distinct from
income, which is a flow generated over a period of time)
✔✔National wealth - ✔✔the stock of all goods that exist at a point in time that have
value in the economy
✔✔Consumption - ✔✔total planned spending by households on consumer goods and
services produced within the economy
✔✔Closed economy - ✔✔an economy with no international trade
✔✔Saving - ✔✔any monies placed in an official scheme.
✔✔Investment - ✔✔total planned spending by firms on capital goods produced within
the economy
✔✔Open economy - ✔✔an economy open to international trade
✔✔Aggregate demand - ✔✔the total planned spending on real output produced within
the economy
✔✔Aggregate supply - ✔✔the level of real national output that producers are prepared
to supply at different average price levels
✔✔Rate of interest - ✔✔the reward for lending savings to somebody else and the cost
of borrowing
✔✔Availability of credit - ✔✔funds available for households and firms to borrow
✔✔Distribution of income - ✔✔the spread of different incomes among individuals and
different income groups in the economy
✔✔Supply-side Policies - ✔✔Government policies designed to increase the productivity
of the economy and business efficiency
✔✔Seasonal fluctuation - ✔✔variation of economic activity resulting from seasonal
change in the economy
, ✔✔Frictional unemployment - ✔✔unemployment that is usually short term and occurs
when a worker switches between jobs
✔✔Geographical immobility of labour - ✔✔when workers are unwilling or unable to
move from one area to another in search of work
✔✔Occupational immobility of labour - ✔✔when workers are unwilling or unable to
move from one type of job to another, for example because different skills are needed
✔✔Structural unemployment - ✔✔long-term unemployment when some industries are
declining, even though other industries may be growing
✔✔Deindustrialisation - ✔✔the decline of manufacturing industries, together with coal
mining
✔✔Seasonal unemployment - ✔✔unemployment arising in different seasons of the
year, caused by factors such as the weather and the end of the Christmas shopping
period
✔✔Real wage - ✔✔the purchasing power of the nominal (or money) wage; for example,
real wages fall when inflation rises quicker than the rate of a nominal wage
✔✔Real-wage unemployment - ✔✔unemployment caused by real wages being stuck
above the equilibrium real wage
✔✔Voluntary unemployment - ✔✔occurs when workers choose to remain unemployed
and refuse job offers at current market rates
✔✔Involuntary unemployment - ✔✔when workers are willing to work at current market
wage rates but there are no jobs available
✔✔Demand-pull inflation - ✔✔a rising price level caused by an increase in aggregate
demand, shown by a shift if the AD curve to the right.
✔✔Cost-push inflation - ✔✔a rising price level caused by an increase in the costs of
production, shown by a shift of the SRAS curve to the left
✔✔Current account deficit - ✔✔occurs when currency outflows in the current account
exceed currency inflows
✔✔Current account surplus - ✔✔occurs when currency inflows in the current account
exceed currency outflows
