Economics · 2019 · November · Paper 2 · HL · Markscheme

N19/3/ECONO/HP2/ENG/TZ0/XX/M 22 pages Markscheme November 2019 Economics Higher level Paper 2 – 3 – N19/3/ECONO/HP2/ENG/TZ0/XX/M Use the paper-specific markscheme together with the markbands. Award up to the maximum marks as indicated. Section A 1. (a) (i) Define the term exchange rate indicated in bold in the text (paragraph ). [2] Level Marks 0 The work does not meet a standard described by the descriptors below. 0 1 Vague definition. 1 The idea that it is to do with the price of a currency. 2 Accurate definition. 2 The value of one currency expressed in terms of another currency. (ii) Define the term trade war indicated in bold in the text (paragraph ). [2] Level Marks 0 The work does not meet a standard described by the descriptors below. 0 1 Vague definition. 1 The idea that it is a trade war using trade protection. 2 Accurate definition. 2 The imposition of a trade barrier by one country results in retaliation by another country in the form of trade protection. (b) Using data from Figure 1 and Figure 2 to create a Phillips curve diagram, explain the relationship between the unemployment rate and the inflation rate between September and December 2016. [4] Level Marks 0 The work does not meet a standard described by the descriptors below. 0 1 There is a correct diagram OR an accurate written response. 1–2 For drawing a correctly labelled SR Phillips curve diagram showing that the inflation rate increased from approximately 3% to 3.4% while there was a decrease in the unemployment rate from approximately 4.15% to 3.38% OR for an explanation that an increase in the inflation rate was accompanied by a fall in the unemployment rate. 2 There is a correct diagram AND an accurate written response. 3–4 For drawing a correctly labelled SR Phillips curve diagram showing that the inflation rate increased from approximately 3% to 3.4% while there was a decrease in the unemployment rate from approximately 4.15% to 3.38% AND for an explanation that an increase in the inflation rate was accompanied by a fall in the unemployment rate.