Macroeconomics

Paper labels are an unofficial, independently authored grouping, applied only where a question's own format genuinely matches a real paper convention (such as IB Mathematics AA's non-calculator/calculator split). They do not reproduce any exam board's real paper numbering or mark allocation, and uncertain questions are labelled general practice instead.

• 5A country's nominal GDP was $500bn in Year 1 and $560bn in Year 2. The GDP deflator was 100 in Year 1 and 106 in Year 2. (a) Calculate real GDP in Year 2, expressed in Year 1 prices. (b) Calculate the percentage growth in real GDP between Year 1 and Year 2. (c) Explain why using nominal GDP growth alone would overstate the increase in the country's actual output. (d) The country's population grew by 3% over the same period. Calculate the approximate percentage change in real GDP per capita. (e) Comment on what this suggests about the change in average living standards.✓ ReviewedPaper 3 style (extended)Hard7 marksCalculator+
• 6Marking analysis: A learner attempts the following task: “A country's nominal GDP was $500bn in Year 1 and $560bn in Year 2. The GDP deflator was 100 in Year 1 and 106 in Year 2. (a) Calculate real GDP in Year 2, expressed in Year 1 prices. (b) Calculate the percentage growth in real GDP between Year 1 and Year 2. (c) Explain why using nominal GDP growth alone would overstate the increase in the country's actual output. (d) The country's population grew by 3% over the same period. Calculate the approximate percentage change in real GDP per capita. (e) Comment on what this suggests about the change in average living standards.” Their response addresses only this point: “Uses real GDP = (nominal GDP / GDP deflator) × 100.” Evaluate the response against the complete 7-mark task. Identify what earns credit and state every additional requirement needed for full marks.✓ ReviewedMarking analysisHard7 marksCalculator+