Pearson Edexcel Level 3 GCE
Economics A
Advanced
PAPER 2: The National and Global Economy
June 20223
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your
centre number and candidate number.
• There are three sections in this question paper. Answer all questions
name,Section A and Section B. Answer one question from Section C.
from
• 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
– use this as a guide as to how much time to spend on each question.
• Calculators
brackets
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
1
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
AREA
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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 September 2022 the Bank of England increased the base interest rate
from 1.75% to 2.25%.
(Source: adapted from https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp)
(a) Draw an aggregate demand and aggregate supply diagram to illustrate the
likely impact of an increase in the UK base interest rate on the average
price level and real output.
(4)
AREA
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(b) Which one of the following is the most likely impact of an increase in the AREA
base interest rate? DO NOT WRITE IN THIS
(1)
A decrease in the:
A level of demand pull inflation
B marginal propensity to save
C rate of cyclical unemployment
D value of the pound against the dollar
(Total for Question 1 = 5 marks)
2
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AREA AREA AREA
BLANK PAGE
QUESTION 2 BEGINS ON THE NEXT PAGE.
over
Turn
3
, 2 UK unemployment rate (%), December 2020 – June
2022 6
AREA
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5.2 5.1
5.0 5.0 4.9 4.9
5
4.7 4.6 4.4
4.2 4.1 4.0 4.0
4.3 3.8 3.7 3.8 3.8 3.8
4
%
3
2
1
0
Sep
Jan
Jan
Feb
Dec
Dec
Jun
May
Jul
Mar
Nov
Aug
Oct
Apr
21
21
21
21
21
21
21
20
21
21
21
21
21
AREA
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(Source: adapted from
https://www.ons.gov.uk/employmentandlabourmarket/
peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/august2022
)
(1)
(a) With reference to the chart, which one of the following is true?
The unemployment rate:
A fell by 1.4% between December 2020 and April 2022
B fell by one percentage point between February 2021
and December 2021
C was highest in March 2022 and lowest in December 2020
D will continue to rise but at a slower rate AREA
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4
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