A LevelEconomicsAQAExam QuestionsThe National & International Economy9. Measuring Macroeconomic Performance

Measuring Macroeconomic Performance (AQA A Level Economics): Exam Questions

Exam code: 7136

31 mins19 questions

Select a download format for 9. Measuring Macroeconomic Performance

Scroll for more

Select an answer set to view for
9. Measuring Macroeconomic Performance

1
Sme Calculator1 mark

Table 4 shows the weights used in the Consumer Prices Index (CPI) for a selection of items in 2008 and 2018.

Category

2008 weight

2018 weight

Food and non-alcoholic beverages

109

101

Alcoholic beverages and tobacco

42

42

Clothing and footwear

63

70

Transport

152

156

All goods

547

519

All services

453

481

The data in Table 4 indicate that between 2008 and 2018 the

  • average price of goods fell, whereas the average price of services increased.

  • percentage increase in the price of ‘Clothing and footwear’ was greater than the percentage increase in the price of ‘Transport’.

  • proportion of total expenditure, by a typical household, on ‘Alcoholic beverages and tobacco’ did not change.

  • total expenditure of a typical household on ‘Food and non-alcoholic beverages’ fell.

Choose your answer

2
Sme Calculator1 mark

An economy had a 3% increase in its real GDP over a one year period. In the same period its population grew by 5% and its rate of inflation was 2.5%. From these data it can be inferred that

  • its Human Development Index decreased by 2%.

  • nominal GDP per capita increased.

  • real wages fell due to inflation.

  • the number of unemployed people increased.

Choose your answer

3
Sme Calculator1 mark

An economy’s GDP increased from £400 billion in 2016 to £428 billion in 2018. Using 2016 as the base year, what is the value of the index for GDP in 2018?

  • 103.5

  • 106.5

  • 107.0

  • 128.0

Choose your answer

4
Sme Calculator1 mark

The following table shows the real GDP of an economy from 2012 to 2016.

Year      

 2012

2013

2014

2015

2016

Real GDP (£bn) 

213

215

 245 

256 

271

If the figures were converted to index form with 2013 as the base year, what would be the value of the index (to the nearest whole number) in 2016?

  • 124

  • 125

  • 126

  • 127

Choose your answer

5
Sme Calculator1 mark

The information below shows the changes in key economic indicators for a country over a period of one year.

Money GDP  

Rate of inflation

Population increase

Gini coefficient

+6% 

+4% 

+1%

–8%

Which one of the following can be concluded from the data?

  • External costs generated from economic activity have reduced the quality of life

  • Real GDP per capita has fallen

  • The distribution of income has become more unequal

  • The standard of living of typical residents in the country has probably improved

Choose your answer

61 mark

Table 1 contains data for GDP per capita and the Human Development Index (HDI) for four countries in a given year.

Table 1

GDP per capita

($)

HDI

Country 1

32 860

0.45

Country 2

29 440

0.77

Country 3

23 230

0.51

Country 4

22 650

0.92

Which one of the following statements is most consistent with the data?

  • Country 1 has the highest living standards of the four countries

  • Country 2 has a higher rate of growth than countries 3 and 4

  • Country 3 is the least developed of the four countries

  • Country 4 has the highest life expectancy and literacy rates

Choose your answer

71 mark

Table 3 contains labour market data, in millions, for the UK in 2019.

Table 3

Population aged 16 years and over

53.3

Economically active labour force

34.3

Total employment

33.0

Total unemployment

1.3

Which one of the following, calculated in accordance with international guidelines, represents the UK’s unemployment rate in 2019?

  • 2.4%

  • 3.7%

  • 3.8%

  • 4.0%

Choose your answer

81 mark

In 2019, an economy operating at full capacity on its long-run aggregate supply curve grew at its trend growth rate of 5% per annum. It had a national income of £200 billion. In 2020, the economy experienced 2% actual growth.

It follows that in 2020 there was

  • a negative output gap equal to £4 billion.

  • a negative output gap equal to £6 billion.

  • a positive output gap equal to £4 billion.

  • a positive output gap equal to £6 billion.

Choose your answer

91 mark

The index of real GDP for an economy was 100 in 2017, its base year, and 105 in 2020. In 2017, real GDP was £500 billion. The monetary value of real GDP for this economy in 2020 must therefore have been

  • £395 billion.

  • £475 billion.

  • £525 billion

  • £605 billion.

Choose your answer

101 mark

Table 1 shows the individual price indices and the weightings of the three goods that make up a price index.

Good

Weighting

Price Index in April 2022

(April 2021=100)

X

0.1

102

Y

0.4

104

Z

0.5

103

What was the percentage increase in the overall price index between April 2021 to April 2022?

  • 1.1%

  • 3%

  • 3.3%

  • 9%

Choose your answer

111 mark

Table 6 shows the value of the UK’s Human Development Index (HDI) over the period 2015 to 2019

Table 6

Year

2015

2016

2017

2018

2019

UK HDI Value

0.916

0.918

0.919

0.920

0.932

All other things being equal, which one of the following is most likely to explain the trend shown in Table 6?

  • A fall in the sterling exchange rate

  • Falling emissions of greenhouse gases

  • Increasing life expectancy at birth

  • Reductions in income inequality

Choose your answer

121 mark

The change in nominal national income per head is an unsatisfactory indicator of the change in the living standards of a country’s citizens over a period of time.

The main reason is that nominal national income per head does not take into account

  • consumer expenditure at market prices

  • the output produced by different sectors of the economy.

  • the rate of inflation.

  • the size of the population.

Choose your answer

131 mark

Table 9 shows the price index for an economy at the end of each of the years from 2019 to 2023.

Table 9

Year

Price index

2019

110

2020

108

2021

117

2022

123

2023

135

In which year did the economy experience disinflation?

  • 2020

  • 2021

  • 2022

  • 2023

Choose your answer