Edexcel A-Level Economics 25-marker Past Paper Questions on Macroeconomics

This page contains a complete list of Edexcel A-Level Economics 25-marker past paper questions on macroeconomics, compiled from published Edexcel exam papers. These extended-response questions require a clear argument supported by detailed analysis and evaluation, making them the most demanding question type on the Edexcel Economics exam.

This page forms part of our wider Edexcel question bank: Edexcel A-Level Economics past paper questions by topic. If you are revising macroeconomics at topic level, you may also want to practise questions on inflation, government debt and fiscal policy, the multiplier, and recession and financial crises.

What is Edexcel A-Level Economics?

Edexcel A-Level Economics is a UK pre-university qualification taken by students in Years 12 and 13. It assesses understanding of macroeconomic and microeconomic theory and the ability to apply economic reasoning to real-world policy issues.

For full coverage of the specification, see the main hub: Edexcel A-Level Economics past paper questions.

How did we compile these macroeconomics 25-marker questions?

We reviewed Edexcel A-Level Economics past papers and extracted every 25-marker that primarily tests macroeconomic concepts. The aim is to give you a single place to practise extended-response questions without having to search through multiple exam papers.

These questions frequently draw on topics such as fiscal policy, monetary policy and inflation, economic growth and development, and trade and protectionism.

What is Macroeconomics?

Macroeconomics studies economic activity at the national and global level, focusing on how households, firms, and governments interact to produce outcomes such as inflation, economic growth, unemployment, and balance of payments positions.

In Edexcel A-Level Economics, macroeconomics covers topics including fiscal policy, monetary policy, economic development, financial crises, trade, and protectionism. These are assessed primarily in Theme 2 (national macroeconomics) and Theme 4 (global macroeconomics) of the specification.

Unlike microeconomics, which focuses on individual markets and firms, macroeconomics examines economy-wide performance and policy trade-offs.

How to answer Edexcel Macroeconomics 25-markers?

Answer Edexcel Macroeconomics 25-markers by writing four body paragraphs (two analyses and two evaluations) that answer directly the question you’ve been asked and which meet the criteria to score 4 knowledge points, 4 application points, 8 analysis points, and 9 evaluation points.

The main difference between writing an Edexcel Economics 25-marker and a 12 or 8-marker is that you are expected to do more in each of the four marking criteria and should separate out your evaluation points from your analysis points so that you can develop them fully. You should also try to use diagrams whenever suitable in order to secure more analysis points and, where possible, introduce your own real-world examples to strengthen your arguments.

You should treat your separate evaluation points as if they were analysis arguments and introduce evidence from the extracts and linked development (A → B → C) whenever possible. Edexcel 25-markers should include an introductory paragraph that offers core definitions as well as a conclusion or “final judgement” paragraph at the end that brings together your two evaluation paragraphs into an overall answer to the question you were asked.

How are Edexcel Macroeconomics 25-markers graded?

All Edexcel Macroeconomics 25-markers are marked based on whether you secure 4 knowledge points, 8 analysis points, 4 application points, and 9 evaluation points.

You can secure 4 knowledge points by offering 2 relevant definitions and 2 factors that influence the answer to your question. Expect as a rough guide that each factor or definition will secure you 1 knowledge point and you are looking to rack up 4 in total. Introduce your definitions in your “introduction” paragraph.

You can secure 8 analysis points by offering 4 instances of chained analysis. As you are looking for 4 analysis points within each argument, you will want to offer a more sophisticated chain of analysis than in an 8-marker. You can do this by offering three steps in your chain A→ B → C so that you not only explain the immediate cause of an outcome but also a further consequence of that outcome. For example, increasing cigarette prices will reduce consumption → this will reduce health risks → this will reduce the burden on the public healthcare system and/or increase worker productivity. Try to offer an example of chained analysis in each of your analysis paragraphs and each of your evaluation paragraphs for 4 total instances of chained analysis and 8 points in total.

You can secure 4 application points by pulling 4 data points from the extracts that support your argument. For example, data on the number of cigarette-related health risks would support the argument about indirect taxes eliminating this externality.

Finally, you can secure 9 evaluation points by fully explaining one counterargument for each of the two points you offer in your answer. These two points of evaluation should be given a full separate paragraph so you can dedicate enough space to explaining them completely. Look to include data points from the extracts or your own real-world examples where possible. You will also want to secure evaluation points in your conclusion or “final judgement.” You should offer a conclusion that brings together your two previous points of evaluation. A simple way to do this is to tell the marker which of your two arguments you find most compelling.

Question 1: Edexcel A-Level Economics 9EC0 November 2021 Paper 2

The European Central Bank introduced a new round of quantitative easing (QE) in March 2020, purchasing up to €750 billion of assets. The objective of this QE was to reduce the serious risks to the effectiveness of monetary policy resulting from a significant recession. The European Central Bank’s target for inflation remains at ‘below but close to 2%’.

Evaluate the effectiveness of quantitative easing during ‘a significant recession’. (25 points)

Question 2: Edexcel A-Level Economics 9EC0 November 2021 Paper 2

It has been estimated that if climate change led to the world’s temperature rising 2.5 °C compared to the temperature in 2010, then global GDP per capita would be 15% lower by 2100. If temperatures rise by 4 °C compared to the temperature in 2010, then by 2100 global GDP per capita would decline by more than 30%. 

Evaluate the potential trade-offs between environmental protection and other macroeconomic objectives. (25 points)

Question 3: Edexcel A-Level Economics 9EC0 November 2020 Paper 2

In 2018, the United States Government cut the corporation tax rate (tax on company profits) from 35% to 21%. Income tax rates for US citizens were also reduced: for example, the top rate of income tax was cut from 39.6% to 37%.

Evaluate the likely impact of cutting tax rates as a policy to increase economic growth.

Question 4: Edexcel A-Level Economics 9EC0 November 2020 Paper 2

In terms of income distribution and wealth distribution Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality. Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil. (25 points).

Question 5: Edexcel A-Level Economics 9EC0 May 2019 Paper 2

Three of Africa’s main trading blocs have agreed to form the Tripartite Free Trade Agreement (TFTA). This will create one of the world’s largest free trade areas, stretching across 26 countries with a combined GDP of around £1 trillion. 

Evaluate the effects of the growth of trading blocs such as the TFTA on global trading patterns (25 points)./h

Question 6: Edexcel A-Level Economics 9EC0 May 2019 Paper 2

Japan’s budget deficit for 2017/18 is expected to be 4.6% of GDP. Its national debt is forecast to increase to above 250% of GDP by 2019. Evaluate the impact of a large fiscal deficit and national debt on a country’s economy. (25 points)

Question 7: Edexcel A-Level Economics 9EC0 June 2017 Paper 2

Since the global financial crisis of 2008 there have been over 5 700 increases in tariffs, quotas and administrative controls on international trade. Evaluate the likely effects of an increase in protectionism on the economy of a developing country of your choice (25 points).

Question 8: Edexcel A-Level Economics 9EC0 June 2017 Paper 2

Global oil prices fell from a 2008 peak of $147 a barrel to $27 in 2016.

Evaluate the likely macroeconomic consequences of a significant fall in global oil prices (25 points).