: Pearson Edexcel past-paper questions pack

Aggregate demand

Past-paper questions pack

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Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 58 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · AS Paper 2 · Q2(a) · 1 marks ·

(a) Which one of the following can be deduced from the table? (1) A Between January 2023 and February 2023, average UK house prices fell by £2 597 B The average UK house price in March 2023 is 16.65% higher than in January 2023 C The index number of average UK house prices for March 2023 is 100 D The ratio of the average UK house price in February 2023 to the average UK house price in March 2023 is 1 : 0.99

2. June 2025 · AS Paper 2 · Q2(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain one likely impact of the fall in average UK house prices on existing homeowners between January 2023 and March 2023. Refer to the table on page 4 in your answer. (3)

3. June 2025 · AS Paper 2 · Q5(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain one likely reason for the deficit in the UK balance of trade in goods and services. Refer to the chart on page 10 in your answer. (3)

4. June 2025 · Paper 2 · Q6(d) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4

(d) With reference to Extract B, discuss the impact of the planned investment by Intel in a new semiconductor factory on Germany’s aggregate demand. Use an aggregate demand and aggregate supply diagram in your answer. (12)

5. June 2025 · AS Paper 2 · Q6(e) · 15 marks ·

(e) Discuss the likely macroeconomic effects of a decrease in government expenditure on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer. (15)

6. June 2024 · Paper 2 · Q1(a) · 1 marks ·

(a) With reference to the chart above, which one of the following is correct? (1) UK household savings as a percentage of household disposable income: A fell in 2015 B fell throughout the time period shown C were the highest in Q1 2017 D were the highest in Q2 2020

7. June 2024 · Paper 2 · Q1(b) · 2 marks · AO2=2

(b) In Q4 of 2015 average household disposable income was £26 300. Calculate the total amount of money saved by the average household in Q4 of 2015. (2)

8. June 2024 · Paper 2 · Q1(c) · 2 marks · AO1=1,AO3=1

(c) Explain one likely reason for the change in total household savings from Q1 2020 to Q2 2020. (2)

9. June 2024 · Paper 2 · Q2(a) · 1 marks ·

(a) Which one of the following is the percentage point fall in investment between April 2020 and July 2020? (1) A 0.1 B 0.6 C 2.1 D 8.9

10. June 2024 · AS Paper 2 · Q2(b) · 2 marks · AO1=2

(b) Explain one likely factor that could increase the level of consumption of UK households. (2)

11. June 2024 · Paper 2 · Q2(b) · 4 marks · AO1=2,AO2=1,AO3=1

(b) With reference to the data, explain one likely effect of the fall in investment in 2020. (4)

12. June 2024 · AS Paper 2 · Q4(a) · 1 marks · AO1=1

13. June 2024 · AS Paper 2 · Q4(b) · 2 marks · AO2=2

(b) Annotate the aggregate demand (AD) and short-run aggregate supply (SRAS) diagram below to show the likely impact of a fall in business investment on the equilibrium level of real output and the price level. (2)

14. June 2024 · AS Paper 2 · Q4(c) · 1 marks ·

Price level SRAS P1 AD Real output Y1 (c) Which one of the following factors might have caused business investment in the UK to fall? (1) A A decrease in business expectations B A decrease in government regulations C An increase in the demand for exports D An increase in the rate of economic growth

15. June 2024 · AS Paper 2 · Q6(b) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(b) Assess the likely impact of an increase in real wages on the UK economy. Use an aggregate demand and aggregate supply diagram in your answer. (10)

16. June 2024 · Paper 2 · Q6(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2

(b) With reference to Figure 4 and Extract A, examine the likely impact of the ‘freeze in income tax thresholds’ (Extract A line 1) on aggregate demand. (8)

17. June 2024 · Paper 3 · Q2(c) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4

(c) Discuss factors influencing the level of aggregate demand in Ghana. Use an aggregate demand and aggregate supply diagram in your answer. (12)

18. June 2023 · AS Paper 2 · Q4(a) · 1 marks · AO1=1

19. June 2023 · Paper 2 · Q4(a) · 1 marks ·

(a) Which one of the following is an example of consumption? (1) A Construction of a new cycle lane B Expansion of Heathrow Airport C New school buildings D Purchase of new clothes

20. June 2023 · AS Paper 2 · Q4(b) · 1 marks ·

(b) Assume 2019 is the base year. Which one of the following represents the index number for 2020? (1) A 9.7 B 90.3 C 109.7 D 110.8

21. June 2023 · AS Paper 2 · Q4(c) · 2 marks · AO2=2

(c) Annotate the aggregate demand (AD) and aggregate supply (AS) diagram below to show the likely impact of a fall in business investment on the equilibrium level of real output and the price level. (2) Price AS level P1 AD Y1 Real output

22. June 2023 · AS Paper 2 · Q6(c) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(c) With reference to Extract A, assess the likely impact of a rise in the value of exports on the UK economy. (10)

23. June 2023 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the main influences on the UK’s net trade balance. (20)

24. June 2023 · Paper 3 · Q2(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(d) Evaluate the microeconomic and macroeconomic effects of falling house prices. (25)

25. June 2022 · Paper 2 · Q2(a) · 1 marks ·

(a) With reference to the chart, which one of the following is true? Average UK house prices: (1) A fell in August 2020 B fell in November 2018 C rose the fastest in May 2021 D stayed constant in 2018

26. June 2022 · Paper 2 · Q2(b) · 4 marks · AO1=2,AO2=1,AO3=1

(b) With reference to the chart on the previous page, explain the likely impact of an increase in average house prices on UK consumption. (4)

27. June 2022 · Paper 2 · Q3(a) · 4 marks · AO1=2,AO2=1,AO3=1

(a) With reference to the chart above, explain the likely impact of a reduction in the base interest rate on UK investment. (4)

28. June 2022 · AS Paper 2 · Q4(a) · 1 marks · AO1=1

(a) Define the term ‘exchange rate’. (1)

29. June 2022 · AS Paper 2 · Q4(b) · 1 marks ·

(b) Which one of the following represents the percentage change in the £ sterling and US$ exchange rate? (1) A 0.31% B 20.26% C 25.41% D 79.74%

30. June 2022 · AS Paper 2 · Q4(c) · 2 marks · AO2=2

(c) Annotate the aggregate demand (AD) and aggregate supply (AS) diagram below to show the likely impact of an improvement in net trade on the equilibrium level of real output and the price level. (2) Price level AS P1 AD Y1 Real output

31. June 2022 · AS Paper 2 · Q6(a) · 4 marks · AO1=2,AO2=2

(a) With reference to Figure 1, explain the term ‘investment’. (4)

32. June 2022 · AS Paper 2 · Q6(b) · 6 marks · AO1=2,AO2=2,AO3=2

(b) With reference to Extract A, explain two influences on the level of UK investment. (6)

33. November 2021 · Paper 2 · Q2(c) · 2 marks · AO1=1,AO3=1

(c) Explain the likely impact on aggregate demand of a fall in average house prices. (2)

34. October 2020 · AS Paper 2 · Q3(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain one likely reason for the UK’s balance of trade in goods and services over the period shown. Refer to the chart on page 6 in your answer. (3)

35. October 2020 · AS Paper 2 · Q6(b) · 5 marks · AO1=1,AO2=2,AO3=2

(b) Explain the likely effect of a fall in the exchange rate of the British pound on aggregate demand. Refer to Extract A in your answer. (5)

36. October 2020 · AS Paper 2 · Q6(c) · 6 marks · AO1=2,AO2=2,AO3=2

(c) With reference to Figure 2 and Extract A, explain two likely influences on the level of UK real household consumption. (6)

37. October 2020 · AS Paper 2 · Q6(d) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(d) Assess the likely impact on the UK economy of an ‘increase in consumption’ (Extract A, lines 5–6). Use an aggregate demand and aggregate supply diagram in your answer. (10)

38. June 2019 · Paper 2 · Q1(a) · 1 marks ·

(a) Which one of the following would be most likely to cause an increase in credit card lending? (1) A A fall in interest rates B A fall in investment C An increase in the deficit on the current account of the balance of payments D An increase in savings

39. June 2019 · Paper 2 · Q2(b) · 1 marks ·

(b) Which one of the following would be an example of government spending on infrastructure? (1) An increase in: A construction work on new railway lines B interest payments on the national debt C salaries for teachers D unemployment benefit payments

40. June 2019 · AS Paper 2 · Q5(a) · 1 marks ·

(a) Which one of the following is the most likely impact of an increase in average UK house prices on existing homeowners? (1) A Greater confidence B Higher income C Lower consumption D Negative wealth effect

41. June 2019 · AS Paper 2 · Q6(d) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(d) With reference to Figure 3, assess the likely impact of the change in the value of exports, since mid-2016, on the economic growth of the UK. Use an aggregate demand and aggregate supply diagram in your answer. (10)

42. June 2018 · Paper 2 · Q2(a) · 1 marks ·

(a) Which one of the following would be most likely to cause aggregate demand to increase? A fall in: (1) A government spending B net trade (X–M) C the marginal propensity to consume D the marginal propensity to save

43. June 2018 · AS Paper 2 · Q4(a) · 1 marks · AO1=1

(a) Define the term ‘aggregate demand’. (1)

44. June 2018 · AS Paper 2 · Q5(a) · 1 marks ·

(a) Which one of the following can be inferred from the chart? In 2016/17: (1) A the change in forecast UK government spending is highest on education B the forecast UK government spending in all areas has fallen from 2015/16 C the forecast UK government spending on defence is twice as much as the forecast spending on housing D the percentage change in forecast UK government spending on health, from 2015/16, is 2.84%

45. June 2018 · Paper 2 · Q5(a) · 2 marks · AO1=1,AO3=1

(a) Explain one likely reason why consumer demand for bank loans has increased. (2)

46. June 2018 · AS Paper 2 · Q5(b) · 2 marks · AO2=2

(b) In 2016/17 total forecast UK government spending amounted to £772 billion and total forecast tax receipts amounted to £716 billion. Calculate forecast UK government spending on social protection as a percentage of total forecast UK government spending in 2016/17. You are advised to show your working. (2)

47. June 2018 · Paper 2 · Q5(b) · 1 marks ·

(b) Which one of the following is most likely to result from an increase in bank lending to individuals? (1) A An improvement in net trade (X–M) B An increase in consumption C An increase in unemployment D Deflation

48. June 2018 · AS Paper 2 · Q6(b) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(b) With reference to Extract A, assess the likely macroeconomic effects of an increase in house prices. Use an aggregate demand and aggregate supply diagram in your answer. (10)

49. June 2018 · AS Paper 2 · Q6(c) · 5 marks · AO1=1,AO2=2,AO3=2

(c) With reference to the information provided, explain one likely factor, other than changes in house prices, that could influence the level of savings of UK households. (5)

50. June 2017 · Paper 2 · Q2(a) · 2 marks · AO1=2

(a) Explain one possible reason for the changes in the marginal propensity to save as shown in the table. (2)

51. June 2017 · AS Paper 2 · Q5(a) · 3 marks · AO1=1,AO2=1,AO3=1

(a) Explain one likely reason for the change in consumer confidence between 2012 and 2015. (3)

52. June 2017 · AS Paper 2 · Q6(a) · 4 marks · AO1=2,AO2=2

(a) With reference to Figure 1, explain the term ‘net trade’. (4)

53. June 2017 · AS Paper 2 · Q6(b) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(b) With reference to the information provided and your own knowledge, assess the likely causes of the UK’s trade deficit. (10)

54. June 2017 · AS Paper 2 · Q6(c) · 5 marks · AO1=1,AO2=2,AO3=2

(c) With reference to Extract A, paragraph 2, explain one likely influence on UK investment. (5)

55. June 2017 · Paper 3 · Q1(e) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(e) With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic impact on Chile’s economy of changes in the level of investment. (25)

56. June 2016 · AS Paper 2 · Q4(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain one likely reason for the reduction in the total UK trade deficit in January 2015. (3)

57. June 2016 · AS Paper 2 · Q6(b) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4

(b) Assess the likely impact of falling real incomes on UK consumers. (10)

58. June 2016 · AS Paper 2 · Q6(c) · 5 marks · AO1=1,AO2=2,AO3=2

(c) With reference to Extract A, explain the likely effect of a rise in the value of the pound on aggregate demand. (5)

Mark schemes

1. June 2025 · AS Paper 2 · Q2(a)

2. June 2025 · AS Paper 2 · Q2(b)

3. June 2025 · AS Paper 2 · Q5(b)

4. June 2025 · Paper 2 · Q6(d)

5. June 2025 · AS Paper 2 · Q6(e)

6. June 2024 · Paper 2 · Q1(a)

7. June 2024 · Paper 2 · Q1(b)

8. June 2024 · Paper 2 · Q1(c)

9. June 2024 · Paper 2 · Q2(a)

10. June 2024 · AS Paper 2 · Q2(b)

11. June 2024 · Paper 2 · Q2(b)

12. June 2024 · AS Paper 2 · Q4(a)

13. June 2024 · AS Paper 2 · Q4(b)

14. June 2024 · AS Paper 2 · Q4(c)

15. June 2024 · AS Paper 2 · Q6(b)

16. June 2024 · Paper 2 · Q6(b)

17. June 2024 · Paper 3 · Q2(c)

18. June 2023 · AS Paper 2 · Q4(a)

19. June 2023 · Paper 2 · Q4(a)

20. June 2023 · AS Paper 2 · Q4(b)

21. June 2023 · AS Paper 2 · Q4(c)

22. June 2023 · AS Paper 2 · Q6(c)

23. June 2023 · AS Paper 2 · Q6(f)

24. June 2023 · Paper 3 · Q2(d)

25. June 2022 · Paper 2 · Q2(a)

26. June 2022 · Paper 2 · Q2(b)

27. June 2022 · Paper 2 · Q3(a)

28. June 2022 · AS Paper 2 · Q4(a)

29. June 2022 · AS Paper 2 · Q4(b)

30. June 2022 · AS Paper 2 · Q4(c)

31. June 2022 · AS Paper 2 · Q6(a)

32. June 2022 · AS Paper 2 · Q6(b)

33. November 2021 · Paper 2 · Q2(c)

34. October 2020 · AS Paper 2 · Q3(b)

35. October 2020 · AS Paper 2 · Q6(b)

36. October 2020 · AS Paper 2 · Q6(c)

37. October 2020 · AS Paper 2 · Q6(d)

38. June 2019 · Paper 2 · Q1(a)

39. June 2019 · Paper 2 · Q2(b)

40. June 2019 · AS Paper 2 · Q5(a)

41. June 2019 · AS Paper 2 · Q6(d)

42. June 2018 · Paper 2 · Q2(a)

43. June 2018 · AS Paper 2 · Q4(a)

44. June 2018 · AS Paper 2 · Q5(a)

45. June 2018 · Paper 2 · Q5(a)

46. June 2018 · AS Paper 2 · Q5(b)

47. June 2018 · Paper 2 · Q5(b)

48. June 2018 · AS Paper 2 · Q6(b)

49. June 2018 · AS Paper 2 · Q6(c)

50. June 2017 · Paper 2 · Q2(a)

51. June 2017 · AS Paper 2 · Q5(a)

52. June 2017 · AS Paper 2 · Q6(a)

53. June 2017 · AS Paper 2 · Q6(b)

54. June 2017 · AS Paper 2 · Q6(c)

55. June 2017 · Paper 3 · Q1(e)

56. June 2016 · AS Paper 2 · Q4(b)

57. June 2016 · AS Paper 2 · Q6(b)

58. June 2016 · AS Paper 2 · Q6(c)