Economic Growth and the Economic Cycle — AQA Past Paper Questions

Explain possible reasons why a country may enter a recession.

2.3.1 Growth and the Economic Cycle

Explain how the data in Extract A (Figure 2), show that Ireland’s economy performed better than the economies of France and Spain in 2021.

2.3.1 Growth and the Economic Cycle

Explain possible causes of economic growth.

2.3.1 Growth and the Economic Cycle

Evaluate the view that economic growth usually leads to an improvement in living standards.

2.3.1 Growth and the Economic Cycle · 2.1.4 Uses of National Income Data

Explain the main problems for an economy of having a large positive output gap.

2.3.1 Growth and the Economic Cycle

Assess policies which can be used to reduce cyclical instability in the UK.

2.3.1 Growth and the Economic Cycle · 2.5.1 Fiscal Policy

Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth.

2.6.4 Exchange Rate Systems · 2.3.1 Growth and the Economic Cycle

Explain how a sustained slowdown in the world economy is likely to affect living standards in the UK.

2.3.1 Growth and the Economic Cycle · 2.6.2 Trade

Extract B (lines 13–15) states ‘If real GDP goes up, the economy is doing well; this is associated with higher incomes, more jobs and higher spending.’ Using the data in the extracts and your knowledge of economics, assess the view that to improve the living standards of their citizens, governments across the world should prioritise achieving economic growth.

2.1.4 Uses of National Income Data · 2.3.1 Growth and the Economic Cycle

Extract E (lines 11–12) states ‘If growth could be increased, the budget deficit would fall much faster.’ With the help of a diagram, explain why a higher rate of economic growth is likely to reduce the budget deficit.

2.5.1 Fiscal Policy · 2.3.1 Growth and the Economic Cycle

Using the data in Extract A (Figure 2), calculate, to two decimal places, the mean growth rate for India from 2010 to 2014.

2.3.1 Growth and the Economic Cycle

To what extent, if at all, do you consider that the UK manufacturing sector has been in decline since 2003? You must use the data in Extract B to support your assessment.

2.3.1 Growth and the Economic Cycle · 2.1.2 Macroeconomic Indicators