Unit 2 Essay Questions

 

Past Paper Questions

OLD SYLLABUS

May 2001 Q1 : Examine the extent to which demand side policies designed to reduce the rate of inflation might cause a rise in the level of unemployment. [Click here for the answer guide]

May 2001 Q2 : Examine the impact of a decision to raise interest rates in an economy where there is both a high rate of inflation and a large current account deficit. Specific reference should be made to the exchange rate in your answer. [Click here for the answer guide]

Jan 2002 Q1: To what extent is it possible for a country to enjoy rapid economic growth, price stability and an equilibrium on the current account of its balance of payments? [Click here for the answer guide]

Jan 2002 Q2: Evaluate the use of supply side policies as a means of raising the rate of economic growth. [Click here for the answer guide]

May 2002 Q1: The Government has recently announced substantial increases in expenditure on secondary education. Using aggregate demand and supply analysis, examine the consequences of this for macroeconomic policy objectives in both the short and long run. [Click here for the answer guide]

May 2002 Q2: Examine the effectiveness of fiscal policy for a country faced with both high levels of inflation and a large budget deficit. [Click here for the answer guide]

Jan 2003 Q1: Using aggregate demand and supply analysis, assess the relative merits of monetary policy and fiscal policy in an economy experiencing rapid inflation. [Click here for the answer guide]

Jan 2003 Q2: Discuss the extent to which the use of demand side policies to achieve full employment might conflict with balance of payments equilibrium and concern for the environment. [Click here for the answer guide]

May 2003 Q1: Using aggregate demand and supply analysis, examine the likely impact on the price level and real output of a decision by government to increase expenditure on the National Health Service financed through a rise in public sector borrowing. [Click here for the answer guide]

Jan 2004 Q1: Using aggregate demand and supply analysis, examine the likely effects of a reduction in interest rates on the UK price level and level of real GDP in the current economic climate. [Click here for the answer guide]

May 2004 Q2: Evaluate the use of supply side policies in raising the level of real output in an economy which is near to full employment. [Click here for the answer guide]

Jan 2005 Q1: Discuss the issues which the Monetary Policy Committee might consider when seeking to achieve its inflation target. [Click here for the answer guide]

Jan 2005 Q2: Evaluate the relative merits of fiscal policy and supply side policies in countering the risk of ‘stagflation’ (Extract 1, line 4). [Click here for the answer guide]

May 2005 Q1: Using aggregate demand and supply analysis and making reference to the role of the multiplier, evaluate the effectiveness of fiscal policy to achieve a higher rate of economic growth. [Click here for the answer guide]

May 2005 Q2: Evaluate the effectiveness of monetary policy as a means of achieving price stability in the UK economy. [Click here for the answer guide]

Jan 2006 Q1: To what extent might ‘shifting resources … into the public sector’ (line 10) assist the government in achieving its macroeconomic policy objectives? [Click here for the answer guide]

Jan 2006 Q2: Assess the likely effects on the UK economy of a decision by the Bank of England’s Monetary Policy Committee to increase interest rates. [Click here for the answer guide]

May 2006 Q1: Examine the likely effectiveness of supply side policies for the control of inflation in an economy experiencing significant rises in its input costs. [Click here for the answer guide]

May 2006 Q2: Evaluate, using the concept of the multiplier, the likely effects on the UK price level and equilibrium real output of the changes referred to in the information provided. [Click here for the answer guide]

Jan 2007 Q1: Examine the relative merits of monetary and fiscal policy as methods for controlling inflation in the context of the information provided. [Click here for the answer guide]

Jan 2007 Q2: Assess the view that supply-side reforms have enabled the UK economy to be ‘more successful in maintaining growth, despite an appreciation in the value of its currency’ (Extract 1, lines 5-6). [Click here for the answer guide]

May 2007 Q1: Assess the implications for the UK economy of the cut in interest rate, ‘down from 4.75% to 4.5%’.(Extract 1 line 3). [Click here for the answer guide]

May 2007 Q2: Assess the relative merits of demand side and supply side policies as measures to improve UK living standards. [Click here for the answer guide]

Jan 2008 Q1: With reference to the information provided and your own knowledge, evaluate the use of supply side policies as a means to reduce a Balance of Payments deficit on the current account. [Click here for the answer guide]

Jan 2008 Q2: With reference to the information provided and your own knowledge, assess the view that ‘the correct decision by the MFC would have been to keep interest rates on hold’. (Extract /, lines 19-20). [Click here for the answer guide]

May 2008 Q1: Assess the likely effectiveness of policies that could be adopted by the government aiming to increase productivity in the UK. [Click here for the answer guide]

May 2008 Q2: Evaluate the effects of ‘tighter monetary and fiscal policy’ (Extract I, line 3) on any two macroeconomic objectives. [Click here for the answer guide]

Jan 2009 Q1: Evaluate the benefits of economic growth for Britain. [Click here for the answer guide]

Jan 2009 Q2: Evaluate the macro-economic effects of the “injection of £2.7 billion of spending power into the economy” (Extract I, lines 5-6) in the light of the information provided. [Click here for the answer guide]

May 2009 Q1: Assess the likely economic impact of an increase in government spending on education and health in both the short and the long run. [Click here for the answer guide]

May 2009 Q2: Examine the case for cutting interest rates in the context of ‘a slowdown in the economy is being accompanied by an unexpected surge in inflation’. [Click here for the answer guide]

NEW 2008 SYLLABUS

Specimen Paper Q1: An economy has significant rises in its input costs. Examine the likely effectiveness of supply side policies for the control of inflation in such an economy. [Click here for the answer guide]

Specimen Paper Q2: Using the concept of the multiplier, evaluate the likely effects on the UK price level and equilibrium real output of rising interest rates. [Click here for the answer guide]

May 2009 Q1: Evaluate the use of supply side policies to achieve economic growth. [Click here for the answer guide]

May 2009 Q2: To what extent do demand-side policies lead to conflicts between macroeconomic objectives? [Click here for the answer guide]

May 2010 Q1: Evaluate the likely effects of a recession (negative economic growth) on the UK economy. [Click here for the answer guide]

May 2010 Q2: Evaluate three ways in which economic policy can be used to ‘stimulate UK economic growth’ (Extract 1, lines 4 to 5). [Click here for the answer guide]

Jan 2011 Q1: Assess the effectiveness of supply-side measures that the government could use to deal with the problems outlined in paragraphs 3, 4 and 5 of Extract 1. [Click here for the answer guide]

Jan 2011 Q2: Evaluate the likely effects on the UK’s current account of the balance of payments of changes in consumption, investment and the exchange rate of the pound sterling (£), as shown in Figures 1 and 2. [Click here for the answer guide]

May 2011 Q1: Discuss the fiscal and supply side policies the UK Government could pursue to reduce the rate of unemployment. Refer to Extract 2 and Figure 3 in your answer. [Click here for the answer guide]

May 2011 Q2: To what extent might rapid economic growth conflict with at least two other macroeconomic objectives? [Click here for the answer guide]

Jan 2012 Q1: Assess the likely impact of UK government labour market policies on any three macroeconomic objectives. Refer to the information provided and to your ownknowledge. [Click here for the answer guide]

Jan 2012 Q2: With reference to Extract 2, evaluate the likely impact of higher inflation on three macroeconomic objectives. [Click here for the answer guide]

May 2012 Q1: Evaluate macroeconomic policies which may be used to reduce the level of unemployment in the UK. [Click here for the answer guide]

May 2012 Q2: Evaluate the benefits of economic growth for the UK. [Click here for the answer guide]

Jan 2013 Q1: Evaluate the macroeconomic effects of the UK government trying to reduce its budget deficit, assuming economic growth remains weak. [Click here for the answer guide]

Jan 2013 Q2: Other than investing in education, evaluate policies a government can implement to raise living standards. [Click here for the answer guide]

May 2013 Q1: Using the information provided and your own knowledge, assess the use of supply side policies, including a reduction in corporation tax, as a means of increasing UK economic growth. [Click here for the answer guide]

May 2013 Q2: To what extent is the policy of reducing the ‘fiscal (budget) deficit’ (Extract 2, line 7) helping the government to achieve its macroeconomic objectives? [Click here for the answer guide]

3 Replies to “Unit 2 Essay Questions”

  1. great site and it helps lots of students and teachers , pls give the essay question answers for unit 2 , 3 and 4 under edexcel new syllabus

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