Aqa A Level Economics 2023 Paper 2 Already Passed

Extract E (lines 4-5) states: '...banks in the UK decreased lending, reducing the availability of credit for households and firms. This damaged the real economy and created high unemployment.' With the help of a diagram, explain how reduced availability of credit from banks may lead to increased unemployment. (9 marks) {Ans: - AD/AS or PPF • definitions/explanations: credit, availability of credit, unemployment • explaining reasons why banks may decide/be forced to reduce the availability of credit • explaining the impacts on consumers and firms • linking the effects to falling consumption and investment • explaining that consumption and investment are components of AD (C+I+G+X-M) • explaining falling levels of AD mean that firms are likely to reduce output • explaining that labour is in derived demand • linking falling output to demand-deficient/cyclical unemployment • explaining this unemployment is involuntary • explaining possible negative multiplier effects of falling investment and further subsequent effects on unemployment.}Explain the main causes of globalisation. (15 marks) {Ans: • definitions/explanations: globalisation • explaining the main features of globalisation in terms of: o trade o movement of labour o movement of capital o transfer of technology • explaining the main causes of globalisation such as: