Non-Schedule Assessment – 1

Grade 12
DP Economics HL
Date: 17 August
Duration: 40 minutes
Maximum Marks: 16

Q1. Explain why governments may pursue the macroeconomic goals of low inflation and
low unemployment.
[10]
Q2. Identify two reasons why measuring the rate of inflation using a consumer price
index (CPI) may not be accurate. [2]
Q3. Identify two difficulties in measuring unemployment. [2]
Q4. a. Given:
Nominal GDP = USD 2560bn
GDP deflator = 103.5
Calculate Real GDP. [1]
b. Given:
Population of working age = 80mn
Total population = 1.3bn
Labour force = 65mn
No. of employed = 62mn
Calculate rate of unemployment rate. [1]