June 2011

Ans ai) Increase/change (1 mark) in a country’s GDP/output (1 mark) over a period of time (1mark).

(ii) With reference to the data in Figure 3a, explain why the economy of Ireland could be described as being in
recession.(3)

Ans aii) Negative economic growth or fall in GDP (1mark). Reference to data 2 marks e.g. fall from 6% in 2007 to -3% in
2008.

(iii) Identify two reasons why governments attempt to increase economic growth. (2)

Ans iii) Each reason, 1 mark. E.g. increase employment, increase standard of living, increase output.

Ans bi)Government expenditure is greater than government revenue.

(ii) Using the data in Figure 3b, identify the year in which the budget deficit in Ireland was greater. (1)

Ans) 2008

(iii) Use of government expenditure and revenue to overcome recession in an economy is called

A) monetary policy B) supply side policy C) fiscal policy D) deregulation. (1)

Ans) C
(iv) Briefly explain one reason why government revenue in Ireland fell during the recession of 2008. (3)

Ans) Reason identified (1 mark) e.g. unemployment high, lower demand. Explanation (2 marks) e.g. less income (1
mark), less income tax revenue (1 mark). Less spending (1 mark) less indirect tax (1 mark).

(v) Examine how a change in a government’s spending could increase economic growth in a country. (6)

Ans) 1 mark for identifying an increase in government expenditure can be used to increase economic growth

3 marks for development E.g. The government can increase (1 mark) its expenditure to increase economic growth. If it
builds more roads (1 mark) then more people will be employed (1 mark) and there will be more demand in the economy
(1 mark).

Evaluation/limitation/problems 2 marks. e.g. if demand increases imports it fails to increase economic growth. If income
is saved to will fail to increase economic growth. Problem of government debt/opportunity cost – less to spend on
health etc.

May 2012

Ans ai) It Falls

Ans ii) 2009

iii) With refernce to the data in 3a, explain your answer. (3)

Ans) Explanation = Economic growth (1 mark) was negative (1 mark) at -2.8% (1 mark) GDP fell = 1 mark.

JAN 2013
(ii) In 2009 the countries of the Eurozone experienced an average economic growth of –4.1%. Which of the following
terms is used to describe a period of negative economic growth? (1)

a)Regression b)Recession c)Recycle d)Gross production

Ans) Recession

(iii) Identify two problems associated with negative economic growth. (2)

Ans) Each problem identified, 1 mark. e.g. unemployment, falling standard of living, loss of confidence in firms/lower
investment/lower government revenue, low/falling aggregate demand/less income for households and or consumers
"less income" is too vague.

Do not accept falling GDP as this is definition.

Jan 2014

Ansiii) 2019

(iv) With reference to the data in Figure 3c, comment on the relationship between Economic Growth and
Unemployment in Canada in 2008 and 2009. (3)

Ans) As economic growth becomes negative unemployment rises (1 mark)

Only if candidates have the relationship between economic growth and unemployment as above can candidates achieve
marks for data.

1 mark for economic growth data 2008-2009 in the range -2.1% to -2.5%

1 mark for unemployment data in the range 8% to 8.4% e.g. Candidates can achieve 3 marks for stating "economic
growth becomes negative -2.5% which results in unemployment increasing to 8%".

June 2014
Ans) Nigeria

ii) Greece experienced a recession in 2011. With refernce to the data in figure in 3a, explain this statement. (2)

Ans) Negative economic growth, reduction in real GDP or output, economy has contracted/shrunk 1 mark.

Reference to data (1) accept anything in range - 6.1 to -7.9) 1 mark