The shorter ones!

1. Look at the question paper and then match the answers with the appropriate question (bearing in mind they aren’t all perfect answers – in fact some are wrong)

2. Identify and correct any deliberate errors3. Assess questions that were correct but

not necessarily thorough enough against the mark scheme. Award a mark and then improve to get higher marks. (In particular focus upon other possible answers for 2b, then look at 3b, 4c, 5a & 5b for improvement)

This refers to firms and consumers within a country’s economy trading/exchanging

goods & services in return for money with firms and consumers from economies of

foreign countries.

Quotas to restrict the import of goods in to a country

Export subsidies to discourage exporting

This is the total output of a country’s entire economy, divided by the population count to

arrive at an output per head figure. This provides a truer comparison of economic

progress between countries of different sizes

Inflation – If aggregate demand increases, and

demand already utilises most of aggregate supply, then

rapid economic growth will lead to a sharp rise in price

levels in the short term. Increase in income inequality

– because inflation that occurs suddenly and is not planned for will result in a

redistribution of wealth that may not be viewed as good

for the longer term health of the economy.

Consumer expenditure went up, because prices got cheaper due to a fall in inflation and there was less

poverty and less unemployment

There will be a positive relationship between changes in consumer expenditure

and investment. More consumer expenditure will boost the animal spirits of businesses and encourage them to invest.

Prices fell by 0.8% in comparison to the

previous year

Argentina had a surplus of $1.3 billion, from a deficit of $1.7

USA had a budget surplus of $13.7 up from a surplus of $2.4

No, it isn’t possible

The tax cut will have caused inflation by creating an increase

in aggregate demand

A budget deficit is when a government spends more

than it collects in tax. A cut in tax rates can commonly be associated with a budget

deficit as taxes like VAT and income tax are a significant

source of government income. A fall in such income would appear to increase the likelihood of a budget deficit

as the government will collect less in taxes.