AQA A Level Economics Paper 2 2025 Question Paper Pdf

Download the official AQA A-Level Economics Paper 2 question paper from the May 2025 series (7136/2), sat on **Monday 19 May 2025 (afternoon)**. This paper focuses on **The National and International Economy** and is worth **80 marks over 2 hours**.

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### **Paper Structure (page 1)**
- **Section A (40 marks):** Data response
- **Section B (40 marks):** Essays
- Students must answer:
- **ONE context** (either Context 1 or Context 2)
- **ONE essay**

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## **Section A: Data Response**

### **Context 1 – The Norwegian Krone (pages 2–3)**
This context explores exchange rates, inflation, and macroeconomic policy.

- **Extract A (page 2):**
- Exchange rate graph shows NOK falling from **~0.161 (Oct 2021)** to **~0.122 (May 2023)**
- Table compares macro indicators (Germany, Norway, Singapore):
- GDP growth: Norway **1.5%**, Singapore **2.7%**
- Inflation: Norway **4.0%**, Singapore **3.3%**
- Current account: Norway **15.9% of GDP**, Singapore **17.6%**

- **Extract B (page 2):**
- Krone depreciated by **>20% over 10 years**
- Inflation peaked at **7.5% (Oct 2022)**
- Depreciation → higher import prices → inflation persists
- Norway runs a large current account surplus (**17.5% of GDP**)
- Trade-off: exchange rate targeting vs interest rate control

- **Extract C (page 3):**
- Singapore uses a **managed floating exchange rate**
- Currency allowed to fluctuate within a **band**
- Benefits:
- Stability, reduced volatility
- Attracts FDI
- Supports competitiveness
- Drawback: limits other policy tools

**Questions include:**
- % change in exchange rate (calculation)
- Data interpretation (Singapore vs Norway/Germany)
- Diagram: appreciation reducing inflation
- **25-mark essay:** Managed vs floating exchange rates

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### **Context 2 – The Emergence of BRICS+ (pages 4–5)**
Focuses on global economic power shifts and development.

- **Extract D (page 4):**
- Table comparing **GDP, population, life expectancy, education** (2001 vs 2023)
- Example:
- Ethiopia GDP: **$40bn → $400bn**
- USA GDP: **$10,582bn → $27,720bn**
- Shows rapid growth in emerging economies

- **Extract E (page 4):**
- BRICS expanded to **BRICS+ (2024)**
- Includes Egypt, Ethiopia, Iran, Saudi Arabia, UAE
- Key points:
- Large populations + growth → rising global influence
- Outsourcing reduces costs for G7
- Growing middle class = new export markets
- Increasing FDI flows into developed economies

- **Extract F (page 5):**
- Concerns:
- Competition → job losses in G7
- Environmental impact of industrialisation
- Rising protectionism and global tensions
- Trade shift:
- BRICS exports: **10.7% → 23.3%**
- G7 exports: **45.1% → 28.9%**

**Questions include:**
- GDP growth comparison calculation
- Data interpretation (Ethiopia vs Japan)
- Diagram: FDI and employment
- **25-mark essay:** Impact of BRICS+ growth on G7 economies

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## **Section B: Essays (pages 6–7)**
Students choose ONE essay:

### **Essay 1: Government & Taxation**
- Explain causes of rising national debt (15 marks)
- Evaluate **direct vs indirect taxes** (25 marks)

### **Essay 2: Inflation & Supply-Side Policies**
- Explain how supply-side policies reduce inflation (15 marks)
- Evaluate whether **low inflation is always beneficial** (25 marks)

### **Essay 3: Development Economics**
- Explain limitations of GDP as a measure of living standards (15 marks)
- Evaluate **interventionist strategies for development** (25 marks)

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## **Key Skills Assessed**
- Data interpretation and calculations
- Exchange rate analysis
- Diagram use (AD/AS, forex, labour markets)
- Application of macroeconomic theory
- Extended evaluation and essay writing

For example, the **exchange rate graph on page 2** clearly shows depreciation of the Norwegian krone, while the **development table on page 4** highlights rapid growth in BRICS+ economies—both essential for high-level analysis.

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This paper is essential for mastering macroeconomics, global economics, and high-level essay evaluation required for top A-Level grades.

Fully updated for the 2025/2026 academic year and optimised for instant download on markscheme.net.

This paper is designed for Year 13 students preparing for AQA A-Level Economics exams, particularly Paper 2 (macroeconomics and the global economy).

Teachers and tutors use this resource for mock exams, data response practice, and essay preparation. It is also ideal for independent learners aiming to refine analytical and evaluative skills.