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AQA 7135-2- ECONOMICS PAPER 2

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Please write clearly in block capitals. Centre number Candidate number Surname Forename(s) Candidate signature I declare this is my own work. AS ECONOMICS Paper 2 The National Economy in a Glo... bal Context AQA 7135-2- ECONOMICS PAPER 2 2 *02* IB/M/Jun20/7135/2 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 An economy experiences a positive supply-side shock. Other things remaining equal, the impact on the economy is most likely to be A higher inflation and faster economic growth. B higher output and lower inflation. C lower employment and slower economic growth. D lower unemployment and a larger budget deficit. [1 mark] 0 2 The quantity of food imported by an economy increases by 12% in one year. The most likely cause is a fall in A domestic farm prices. B income tax. C the exchange rate. D welfare benefits. [1 mark] 3 *03* Turn over ► IB/M/Jun20/7135/2 Do not write outside the box 0 3 Figure 1 shows aggregate demand (AD) curves for an economy. Figure 1 Which one of the following is most likely to cause the aggregate demand curve to shift from AD1 to AD2? A A fall in imports B A fall in the price level C A reduction in the budget deficit D A rise in the exchange rate [1 mark] 0 4 Which one of the following statements about the consumer price index (CPI) is correct? A A fall in the CPI means that the real value of money is falling B An increase in the CPI means that the rate of inflation is rising C The CPI measures changes in the prices of goods and services bought by households D The weights used in the CPI reflect changes in the quality of goods and services [1 mark] 4 *04* IB/M/Jun20/7135/2 Do not write outside the box 0 5 An economy has recently recovered from a recession and closed its negative output gap. The government would now like to increase the trend rate of economic growth. Which one of the following policies is likely to be the most effective? A Expansionary fiscal policy B Expansionary monetary policy C Redistributive policies D Supply-side policies [1 mark] 0 6 The government invests £1 billion in an extension to the motorway network. As a result, in addition to this initial investment, national income increases by a further £2 billion. What is the value of the multiplier? A 0.5 B 1 C 2 D 3 [Show More]

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