PhysicsAndMathsTutor.com Write your name here Surname Other names Pearson Edexcel Centre Number Candidate Number International Advanced Level Economics International Advanced Subsidiary Unit 2: Macroeconomic Performance and Policy Thursday 12 January 2017 – Afternoon Paper Reference Time: 1 hour 30 minutes WEC02/01 You do not need any other materials. Total Marks Instructions • Use black ink or ball-point pen. • Fill in the boxes at the top of this page with your name, centre number and candidate number. • Answer all questions in Section A and one question from Section B. • Answer the questions in the spaces provided – there may be more space than you need. Information • The total mark for this paper is 80. • The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question. • In your responses, you should take particular care with your spelling, punctuation and grammar, as well as the clarity of your expression. • Calculators may be used. Advice • Read each question carefully before you start to answer it. • Check your answers if you have time at the end. Turn over P48350A ©2017 Pearson Education Ltd. *P48350A0148* 1/1/1/1/1/1/1/1/e2 PhysicsAndMathsTutor.com SECTION A Answer ALL questions in this section. You should spend 35 minutes on this section. Use the data to support your answers where relevant. You may annotate and include diagrams in your answers. 1 The chart below shows Germany’s balance of trade, 2008–2014 (€ billion). 300 250 200 € billion 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 Year (Source: http://data.worldbank.org/country/germany) (a) From this chart it can be deduced that between 2008 and 2014 (1) A the value of imports was greater than the value of exports B government expenditure was greater than tax revenues C the value of exports was greater than the value of imports D savings were greater than investment Answer 2 *P48350A0248* PhysicsAndMathsTutor.com (b) Explanation (3) .................................................................................................................................................................................................................................................................................... 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(Total for Question 1 = 4 marks) 3 *P48350A0348* Turn over PhysicsAndMathsTutor.com 2 The chart below shows the rate of inflation, as measured by the consumer price index (CPI), for Croatia, 2008–2014. 7 6 5 4 % 3 2 1 0 -1 2008 2009 2010 2011 2012 2013 2014 Year (Source: http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG) (a) From this chart it can be deduced that (1) A there was deflation between 2008 and 2010 B there was disinflation between 2010 and 2012 C average prices were lower in 2010 than in 2009 D average prices were higher in 2014 than in 2012 Answer 4 *P48350A0448* PhysicsAndMathsTutor.com (b) Explanation (3) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................................................................