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2.# Study&the&extract&below&and&answer&the&questions&that&follow.

concerns4about4 .444

# 4
gross4domestic4product4(GDP)4resulted4from4foreign4trade,4with4a4strong4increase4in4imports4

fall4since4World4War4II.

# German4unemployment4could4increase4by4around4one4million4in420094and4reach44.44million4
4
but4economic4growth4will4not4return4until4the4second4half4of42010,4according4to4the4OECD*.

#
4

in4Germany.

# The4 package4 of4 measures4 to4 stimulate4 the4 economy4 may4 be4 a4 step4 in4 the4 right4 direction4 in4
4

German4government,4which4recently4passed4a4second4package4of4emergency4spending4worth44

# Major4 measures4 planned4 for4 2009–20104 include4 additional4 infrastructure4 investment44

4
of4 15.84 billion4 euros,4 a4 reduction4 in4 health4 insurance4 contributions4 and4 subsidies4 for44
individual4industries.44

*4
4
4

(This&question&continues&on&the&following&page)

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(Question&2&continued)

# However,4some4economists4say4the4government4has4been4too4hesitant4in4its4efforts4to4stimulate4
the4 economy.4 4 The4 impact4 of4 some4 measures4 may4 be4 limited4 by4 the4 rising4 4 ratio.44

to4start4growing.4

[Source:4adapted4from4http://www.dw1world.de/dw/article/0,,3788397,00.html,4134November42008]44

4 4 (i)4 (paragraph& ) [2&marks]

4 4 (ii)4 savings4(paragraph& ). [2&marks]

4 (b)4
in4relation4to4the4business4cycle. [4&marks]

4 (c)4 one
Germany4in42009. [4&marks]

4
evaluate4 t
designed4to4boost4the4economy4and4reduce4unemployment. [8&marks]

221115113 Turn#over#