Consumption — Edexcel Past Paper Questions

Assess the likely impact of an increase in real wages on the UK economy. Use an aggregate demand and aggregate supply diagram in your answer.

2.2.1 Aggregate Demand · 2.2.2 Consumption

Evaluate the microeconomic and macroeconomic effects of falling house prices.

One of two options in Section B — candidates answered this or the other.

2.2.2 Consumption · 4.4.1 Role of Financial Markets

With reference to Figure 2 and Extract A, explain two likely influences on the level of UK real household consumption.

2.2.2 Consumption

Assess the likely impact on the UK economy of an ‘increase in consumption’ (Extract A, lines 5–6). Use an aggregate demand and aggregate supply diagram in your answer.

2.2.1 Aggregate Demand · 2.2.2 Consumption

With reference to Extract A, assess the likely macroeconomic effects of an increase in house prices. Use an aggregate demand and aggregate supply diagram in your answer.

2.2.1 Aggregate Demand · 2.2.2 Consumption

With reference to the information provided, explain one likely factor, other than changes in house prices, that could influence the level of savings of UK households.

2.2.2 Consumption

Assess the likely impact of falling real incomes on UK consumers.

2.2.2 Consumption