: Pearson Edexcel past-paper questions pack

Economic growth, output gaps and the trade cycle

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 · 28 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · AS Paper 2 · Q3(a) · 1 marks ·

(a) Which point on the trade cycle diagram illustrates a positive output gap? (1) Real GDP Trend GDP growth Actual GDP growth D C A B Time A B C D

2. June 2025 · AS Paper 2 · Q3(b) · 2 marks · AO1=2

(b) Explain one reason why it is difficult to measure the size of an output gap in an economy. (2)

3. June 2025 · Paper 2 · Q3(b)(i) · 2 marks · AO1=1,AO3=1

(b) Explain one likely disadvantage of a decline in GDP on: (i) workers (2)

4. June 2025 · Paper 2 · Q3(b)(ii) · 2 marks · AO1=1,AO3=1

(b) Explain one likely disadvantage of a decline in GDP on: (ii) government. (2)

5. June 2025 · AS Paper 2 · Q3(c) · 1 marks · AO1=1

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

(a) Which one of the following best describes an increase in real GDP? (1) A Actual economic growth B Negative output gap C Positive output gap D Potential economic growth

7. June 2024 · Paper 2 · Q4(a) · 1 marks ·

(a) Which one point on the trade cycle diagram above illustrates a boom? (1) A B C D

8. June 2024 · AS Paper 2 · Q6(c) · 6 marks · AO1=2,AO2=2,AO3=2

(c) With reference to the information provided, explain two characteristics of a recession. (6)

9. June 2023 · Paper 2 · Q3(b) · 2 marks · AO1=1,AO3=1

(b) Explain one likely cost of UK real GDP falling by 9.9% in 2020. (2)

10. June 2023 · Paper 2 · Q3(c) · 1 marks ·

(c) Which one of the following is most likely to lead to an increase in potential economic growth? (1) An increase in: A consumption B costs of raw materials and energy C income tax D technological advances

11. June 2023 · AS Paper 2 · Q5(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) With reference to the chart, explain one likely benefit of economic growth to firms. (3)

12. June 2023 · Paper 2 · Q6(c) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4

(c) Discuss the impact of improved transport links between African countries on economic growth rates. (12)

13. June 2022 · Paper 2 · Q4(a) · 1 marks ·

(a) At point Z on the diagram, which one of the following is likely to occur? An increase in: (1) A absolute poverty B budget deficit C cyclical unemployment D inflation

14. June 2022 · AS Paper 2 · Q6(d) · 5 marks · AO1=1,AO2=2,AO3=2

(d) Explain one likely reason why ‘the UK Government expects the UK economy to perform better than Germany and Italy’ (Extract A, lines 19–20). (5)

15. June 2022 · AS Paper 2 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

(e) With reference to the information provided, discuss the likely impact of a recession on the UK economy. (15)

16. November 2021 · Paper 3 · Q1(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(d) Evaluate the microeconomic and macroeconomic factors which determine the number of firms in an industry. Refer to HCWs or another industry of your choice. (25)

17. November 2021 · Paper 3 · Q2(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(d) Evaluate the microeconomic and macroeconomic factors which are likely to determine the rate of economic growth in Germany relative to other developed economies. (25)

18. October 2020 · Paper 2 · Q5(b) · 1 marks ·

(b) Which one of the following would be most likely to solve a negative output gap problem in a domestic economy? An increase in (1) A government funding to the World Bank B government spending on foreign aid C government spending on public transport D income tax

19. October 2020 · AS Paper 2 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

(e) Discuss the factors that might explain why ‘the UK’s forecast long-term trend rate of growth was reduced’ (Extract B lines 9–10). (15)

20. June 2019 · AS Paper 2 · Q2(b) · 2 marks · AO1=2

Price level 0 Real output (b) Explain what is meant by spare capacity in an economy. (2)

21. June 2018 · AS Paper 2 · Q2(a) · 1 marks · AO1=1

22. June 2018 · AS Paper 2 · Q2(b) · 2 marks · AO1=2

(b) Explain one characteristic of a recession. (2)

23. June 2018 · AS Paper 2 · Q2(c) · 1 marks ·

(c) Which point on the trade cycle diagram illustrates a negative output gap? (1) Real GDP Trend GDP growth Actual GDP growth D C A B Time A B C D

24. June 2017 · AS Paper 2 · Q3(c) · 1 marks · AO1=1

(c) Illustrate a negative output gap on the diagram below. (1) Price AS level P1 AD Y1 Real output

25. June 2017 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the benefits of economic growth to the UK given that ‘a number of concerns remain’ in the UK economy (Extract A, line 7). (20)

26. June 2017 · AS Paper 2 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate the view that another recession is ‘inevitable’ in the UK (Extract A, line 24). (20)

27. June 2017 · Paper 3 · Q2(a) · 5 marks · AO1=2,AO2=2,AO3=1

(a) With reference to Extract D (line 18), explain the meaning of the term ‘output gap’. Use an aggregate demand and aggregate supply diagram in your answer. (5)

28. June 2016 · AS Paper 2 · Q2(c) · 1 marks · AO1=1

(c) Diagram A shows the aggregate demand and aggregate supply for a country. Illustrate actual economic growth on Diagram A. (1) Diagram A Price Aggregate supply level P1 Aggregate demand Y1 Real output

Mark schemes

1. June 2025 · AS Paper 2 · Q3(a)

2. June 2025 · AS Paper 2 · Q3(b)

3. June 2025 · Paper 2 · Q3(b)(i)

4. June 2025 · Paper 2 · Q3(b)(ii)

5. June 2025 · AS Paper 2 · Q3(c)

6. June 2024 · AS Paper 2 · Q1(a)

7. June 2024 · Paper 2 · Q4(a)

8. June 2024 · AS Paper 2 · Q6(c)

9. June 2023 · Paper 2 · Q3(b)

10. June 2023 · Paper 2 · Q3(c)

11. June 2023 · AS Paper 2 · Q5(b)

12. June 2023 · Paper 2 · Q6(c)

13. June 2022 · Paper 2 · Q4(a)

14. June 2022 · AS Paper 2 · Q6(d)

15. June 2022 · AS Paper 2 · Q6(e)

16. November 2021 · Paper 3 · Q1(d)

17. November 2021 · Paper 3 · Q2(d)

18. October 2020 · Paper 2 · Q5(b)

19. October 2020 · AS Paper 2 · Q6(e)

20. June 2019 · AS Paper 2 · Q2(b)

21. June 2018 · AS Paper 2 · Q2(a)

22. June 2018 · AS Paper 2 · Q2(b)

23. June 2018 · AS Paper 2 · Q2(c)

24. June 2017 · AS Paper 2 · Q3(c)

25. June 2017 · AS Paper 2 · Q6(f)

26. June 2017 · AS Paper 2 · Q6(g)

27. June 2017 · Paper 3 · Q2(a)

28. June 2016 · AS Paper 2 · Q2(c)