Nominal GDP rises from £2.5 trillion to £2.7 trillion while the GDP deflator rises from 100 to 105. Calculate the growth of real GDP.
From Paper 2: The national and global economy
1(b)3 marks
Explain one limitation of using GDP per capita to compare living standards between countries.
From Paper 2: The national and global economy
3(a)2 marks
1.5 million people are unemployed and the labour force is 33.5 million. Calculate the unemployment rate.
Section B — Data: UK productivity and economic growth
Extract 1: UK output per hour worked grew by around 2% a year in the decade before 2008. Between 2008 and 2023 it grew by only about 7% in total. Business investment as a share of GDP is lower than in most G7 economies.
Extract 2: Real GDP growth was around 0.1% in 2023 and the economy entered a technical recession in the second half of the year. Economists estimated a small negative output gap. Inflation was falling back towards the 2% target, while public sector net debt was close to 100% of GDP.
Extract 3: Proposals to raise growth include planning reform to speed up building of homes and infrastructure, permanent full expensing of investment for tax purposes, more spending on skills and childcare, and closer trading links with the EU.
From Paper 3: Microeconomics and macroeconomics
2(a)5 marks
With reference to Extract 1, calculate the average annual growth in output per hour from 2008 to 2023 and compare it with the pre-2008 trend.
Score 0 / 12 · 0 of 4 marked
This paper is written by Plasmo in the style of the Edexcel A-Level Economics exam. It is not a past paper and is not produced or endorsed by the exam board.