MODEL ANSWER Extract F (line 1) states that “The fall in oil prices has been a “net good” for the UK economy”. Using the data in the extracts and your economic knowledge, assess the view a sustained fall in the price of oil can only have positive outcomes for the UK economy. (25 marks)

MODEL ANSWER Extract E (lines 8 - 9) states that ‘the collapse in the oil price has had significant effects on the economy of Saudi Arabia‘. Using a diagram, explain the likely effect on growth, employment and inflation in Saudi Arabia of the recent collapse in the price of oil. (9 marks)

MODEL ANSWER Extract E (lines 4-6) states ‘the UK may soon be growing at an annual rate of between 3 and 4% and the Bank could not be certain when it might need to tighten policy.’ With the help of a diagram, explain why interest rates may need to rise if growth rates increase (9 marks)