Economics 9708/21 — May/June 2018
Cambridge AS Level · AS Level Data Response and Essays · worked solutions for every part, with the mark scheme
Topics Economic Systems · Exchange Rates · Balance of Payments · Methods of Government Intervention in Markets · Classification of Goods and Services · Reasons for Government Intervention in Markets · +4 more
Russia’s economic problems are getting worse
Russia’s currency, the rouble (RUB), has been falling rapidly in value.
Content removed due to copyright restrictions
An index of the real exchange rate fell from a value of 100 in 2010 to 75.8 in 2015 and this should have the effect of eventually helping to encourage exports.
Source: Adapted from The Economist
Table 1.1: Selected economic indicators for Russia 2013–2015
| Economic Indicator | 2013 | 2014 | 2015 |
|---|---|---|---|
| Annual inflation rate | 6.8% | 7.8% | 15.4% |
| Economic growth rate | 1.3% | 0.6% | -3.9% |
| Nominal exchange rate (RUB per US$) | 38.4 | 56.3 | 61.3 |
Source: Adapted from The World Fact Book
Using Table 1.1, calculate the percentage fall in the nominal value of the rouble against the US dollar between 2013 and 2015.
Explain the difference between a nominal exchange rate and a real exchange rate.
Explain, using a demand and supply diagram, how the fall in the price of a barrel of oil contributed to a decline in the value of the rouble.
Analyse the likely impact the depreciation of the rouble could have on the Russian economy.
Discuss whether the privatisation of some state assets would be of overall benefit to the Russian economy.
The rest of this paper
3 more questions- Q2Classification of Goods and Services · Economic Systems · Reasons for Government Intervention in Markets20M
- Q3Elasticities of Demand20M
- Q4(Legacy) - Money · Aggregate Demand and Aggregate Supply · Price Stability20M