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    2022 p2 Macro

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    Tahiya Choudhury
    An island economy suffers extensive damage from a hurricane. The diagrams show aggregate demand, short-run aggregate supply, and long-run aggregate supply for the economy before and after the hurricane. The question asks which diagram shows the most likely new equilibrium position after the hurricane.

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    © All Rights Reserved
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    2022 p2 Macro

    Uploaded by

    Tahiya Choudhury
    25 views6 pages
    An island economy suffers extensive damage from a hurricane. The diagrams show aggregate demand, short-run aggregate supply, and long-run aggregate supply for the economy before and after the hurricane. The question asks which diagram shows the most likely new equilibrium position after the hurricane.

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    2022 p2 macro

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    An island economy suffers extensive damage from a hurricane. The diagrams show aggregate demand, short-run aggregate supply, and long-run aggregate supply for the economy before and after the hurricane. The question asks which diagram shows the most likely new equilibrium position after the hurricane.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views6 pages

    2022 p2 Macro

    Uploaded by

    Tahiya Choudhury
    An island economy suffers extensive damage from a hurricane. The diagrams show aggregate demand, short-run aggregate supply, and long-run aggregate supply for the economy before and after the hurricane. The question asks which diagram shows the most likely new equilibrium position after the hurricane.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 6

    8

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    outside the
    1 3 A small island economy suffers extensive damage from a hurricane. The following box

    diagrams show aggregate demand (AD), short-run aggregate supply (SRAS) and long-run
    aggregate supply (LRAS) for the economy. Equilibrium before the hurricane is at E1.

    Which one of the following diagrams shows the most likely position of E2, the equilibrium
    reached after the hurricane?
    [1 mark]

    *08*
    IB/M/Jun22/7135/2
    12
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    Section B box

    Look at the Insert and choose to answer EITHER Context 1 OR Context 2.

    Answer EITHER Questions 21 to 26 in the spaces below


    OR
    Questions 27 to 32 on pages 23 to 32 of this answer booklet.

    There is a total of 50 marks for either context.

    Shade the circle below to indicate which context you have answered.

    Context 0 1 Context 0 2

    WRONG METHODS CORRECT METHOD

    EITHER

    Context 1 Total for this context: 50 marks

    ECONOMIC GROWTH

    Use the Insert provided to study Questions 21 to 26 and Extracts A, B and C, and then answer the
    questions in the spaces which follow.

    2 1 Define ‘price stability’ Extract B (line 3).


    [3 marks]

    *12*
    IB/M/Jun22/7135/2
    13
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    2 2 If UK GDP was equal to £2073 billion in 2017, use Extract A to calculate, to the nearest box

    billion, the value of UK GDP in 2018.


    [4 marks]

    Turn over for the next question

    Turn over ►

    *13*
    IB/M/Jun22/7135/2
    14
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    2 3 Use Extract A to identify two significant points of comparison between the growth rates of box

    the UK and Germany over the period shown.


    [4 marks]

    Comparison 1

    Extra space

    Comparison 2

    Extra space

    *14*
    IB/M/Jun22/7135/2
    15
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    2 4 Extract C (lines 16–17) states: ‘An increase in the funds available for education and box

    training should help to improve factor mobility’.

    Draw an AD/AS diagram to show the long-run impact of improved factor mobility on the
    price level and national income.
    [4 marks]

    Turn over for the next question

    Turn over ►

    *15*
    IB/M/Jun22/7135/2
    26
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    box
    3 1 Extract F (lines 1–2 and 8) states: ‘As part of fiscal policy, government spending can be
    used to allocate resources to different regions and sectors of the economy and
    consequently, change the pattern of economic activity...Taxation also has a role to play in
    affecting the pattern of activity’.

    Explain ways in which a government can use fiscal policy to affect the pattern of
    economic activity.
    [10 marks]

    *26*
    IB/M/Jun22/7135/2

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