Professional Documents
Culture Documents
January 2022
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January 2022
Question Paper Log Number P70679A
Publications Code WEC12_01_2201_MS
All the material in this publication is copyright
© Pearson Education Ltd 2022
General Marking Guidance
Knowledge
Correctly drawn LRAS and AD curves with correctly labelled axes (1)
Application
Up to 3 marks for the following information included on the
diagram:
• Drawing LRAS to left of short run equilibrium (1)
• Labelling the short run equilibrium and full employment level
of output at LRAS (1)
• Correct labelling of the positive output gap (1)
Knowledge
Correctly labelled axes (1)
(4)
Application
Up to 3 marks for the following information included on the
diagram:
• Drawing the actual GDP growth rate on the diagram (1)
• Drawing the trend GDP growth rate on the diagram (1)
• Correct labelling of the positive output gap (1)
Question Based on this information, calculate the change in the balance of Mark
trade for Saudi Arabia between 2018 and 2019. Show your workings.
9 Knowledge 1, Application 3
Knowledge
1 mark for correct definition/formula/implicit understanding, e.g.:
• Value of exports - value of imports
• X-M (1)
Application
Up to 3 marks for use of data in calculation from the following, e.g.:
Application
1 mark for appropriate reference to Turkey, e.g.:
• 1.4 million more immigrants than emigrants (1)
• More immigrants than emigrants (1)
• Net migration is a positive figure suggesting more coming
in than leaving (1) (4)
Question With reference to the data, explain the relationship between income Mark
and subjective happiness.
11 Knowledge 2, Application 2
Knowledge
Up to 2 marks for understanding the relationship, e.g.:
Application
Up to 2 marks applying this to the table, e.g.:
• Singapore has the highest income/GDP per capita at PPP
$101 458 and the highest world happiness score at 6.377
(1)
• India has the lowest income ($6 977) and lowest (4)
happiness score (3.573) (1)
Section C
Question Define the term ‘fiscal policy’ (Extract A, line 12). Mark
12 (a) Knowledge 2
Question With reference to Figure 1, explain how the ILO unemployment rate is Mark
measured.
12 (b) Knowledge 2, Application 2
Application
Up to 2 marks for relevant application to unemployment in New
Zealand, e.g.:
• Increased from 4.2% in Q1 (1) to 5.3% in Q3 2020 (1)
• Decreased from 5.3% in Q3 2020 (1) to 4.9% in Q4 2020 (1) (4)
Question With reference to Figure 1 and Extract A, examine two likely economic Mark
effects of the increase in unemployment experienced in New Zealand
between Quarter 2 and Quarter 3 2020.
Application
Up to 2 marks for reference to the data, e.g.:
• ILO unemployment increases from 4% to 5.3% (1)
• ILO unemployment increased 1.3 percentage points between
Q2 and Q3 (1)
• Significant increase in redundancies in the tourism industry (1)
Evaluation
Up to 2 marks for evaluative comments (1+1 or 2+0), e.g.:
• The size of the change in unemployment is significant in one
quarter (1) so would have a big impact on increasing
government spending on benefits (1)
• The effect of unemployment becomes more significant if it is
long term (1) as people lose skills required for work and find it
difficult to find employment in the future (1)
• Unemployment in the tourism sector may be temporary (1) as
when foreigners can return the demand for tourism should
rise (1) (8)
• Automatic stabilisers will help (1) as government expenditure
on welfare benefits will boost consumption and AD (1)
Question With reference to Extract A, analyse one likely effect of the reduction in Mark
tourist visitors on the circular flow of income.
Illustrate your answer with a circular flow diagram.
12(d) Knowledge 2, Application 2, Analysis 2
Application
Up to 2 marks for use of the data or reference to context, e.g.,
• The injection into the economy will result in further rounds of spending
via the multiplier effect
Diagrams should be rewarded that shift both AD right and LRAS right