The macroeconomy (AS Level)

Worked examples (6)

• 1Distinguish GDP and GNI (3 marks)
• 2Calculate GNI and NNI (4 marks)
• 3Convert market prices to basic prices (4 marks)
• 4When GNI differs from GDP (5 marks)
• 5Explain gross vs net (5 marks)
• 6Evaluate using GDP to compare living standards (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Classify injections and leakages (4 marks)
• 2Apply the equilibrium condition (4 marks)
• 3Explain the circular flow (5 marks)
• 4Effect of higher exports on the flow (5 marks)
• 5Effect of higher saving on the flow (6 marks)
• 6Evaluate the circular flow model (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Identify the components of AD (4 marks)
• 2Explain why AD slopes downward (3 marks)
• 3Distinguish SRAS and LRAS shifts (5 marks)
• 4AD rise: output vs inflation (6 marks)
• 5Effect of an SRAS shift (cost-push) (5 marks)
• 6Evaluate AD/AS for analysing policy (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Distinguish actual and potential growth (4 marks)
• 2Calculate real GDP growth (4 marks)
• 3Deflate nominal GDP to real GDP (4 marks)
• 4Explain causes of growth (5 marks)
• 5Analyse consequences of rapid growth (6 marks)
• 6Evaluate growth and living standards (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Define unemployment and the labour force (3 marks)
• 2Calculate the unemployment rate (4 marks)
• 3Classify types of unemployment (5 marks)
• 4Analyse consequences of unemployment (6 marks)
• 5Match policy to type of unemployment (6 marks)
• 6Evaluate reducing unemployment (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Distinguish inflation, deflation and disinflation (3 marks)
• 2Calculate inflation from a CPI (4 marks)
• 3Calculate the change in a real wage (4 marks)
• 4Identify demand-pull vs cost-push inflation (5 marks)
• 5Show cost-push inflation on AD/AS (5 marks)
• 6Evaluate whether inflation is always harmful (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style