AQA Paper 2 Hot Topics - 2025!

Summary

This video provides AQA students with essential revision tips for Paper 2, focusing on key hot topics likely to feature in the exams, such as free trade, protectionism, exchange rates, development economics, and macroeconomic policies. The presenter emphasizes prioritizing 10-15% more time on these areas while ensuring all topics are covered. Key themes like the UK's post-Brexit trade deals, global monetary policies, inflation, and deflation are highlighted. Students are encouraged to connect theory with real-world examples and stay updated with the revision playlist for further insights and strategies to achieve top grades.

Takeaways

• 😀 Focus 10-15% more time on hot topics for Paper 2, but don't neglect other areas of the syllabus.
• 😀 Free trade and protectionism are key topics—be prepared to discuss the pros and cons, especially in the context of post-Brexit UK trade deals and recent US trade policies.
• 😀 Know the impact of exchange rates, especially weak currencies like the UK pound, euro, and currencies in developing countries like Nigeria, Turkey, and Argentina.
• 😀 Understand the causes and consequences of current account deficits and surpluses, focusing on countries like the UK, USA, Turkey, China, and Germany.
• 😀 Economic development topics, including cuts to foreign aid, interventionist policies, and the trade vs aid debate, are often under-revised but essential.
• 😀 Macroeconomic policies are crucial for Paper 2. Be prepared to evaluate both expansionary and contractionary fiscal and monetary policies.
• 😀 Contractionary policies like interest rate hikes and fiscal tightening have been widely discussed globally, particularly as responses to inflation.
• 😀 Inflation and deflation are important macroeconomic indicators to revise—focus on their causes and the consequences of both in global economies like China and the UK.
• 😀 Financial market regulation is a significant topic, especially regarding its role in preventing bank failures and ensuring macroeconomic stability.
• 😀 The rising savings ratio in the UK post-COVID is a noteworthy topic, with pros and cons of increased savings in the economy.
• 😀 Supply-side policies aimed at boosting growth and reducing economic inactivity are major themes, especially in the context of regional wage inequality and competitiveness.

Q & A

What are the key topic areas to focus on for Paper 2 and Paper 3 exams?

The key topic areas to focus on include free trade vs protectionism, exchange rates, balance of payments, development issues, macroeconomic policies, financial markets, inflation and deflation, and supply-side policies. These areas have a higher likelihood of appearing in your exams and should be given extra attention.

Why should students devote more time to certain topics, and by how much?

Students should devote 10-15% more time to the hot topic areas because they have a higher likelihood of being featured in major essay questions. Focusing more on these topics ensures students are well-prepared, even if other topics are featured instead.

How are free trade and protectionism likely to feature in the exams?

Free trade and protectionism could be major essay topics, particularly given the UK's stance on global trade post-Brexit. The pros and cons of both systems should be well understood, especially in relation to trade deals and global leaders like Donald Trump and Joe Biden.

What is the significance of exchange rate depreciation in recent global economies?

Many countries, including the UK, the eurozone, and developing countries, have faced exchange rate depreciation. This has significant implications on international trade, inflation, and economic stability. It's essential to understand the causes and consequences of both weak and strong exchange rates.

What should students know about Croatia's entry into the Eurozone in 2023?

Croatia's entry into the Eurozone on January 1st, 2023, may be a topic in the exam. Students should understand the pros and cons of Euro membership and the implications of joining a monetary union, particularly regarding economic stability and fiscal policies.

What are the key causes and consequences of a current account deficit?

Countries like the UK, the USA, and Turkey are examples of those facing current account deficits. Understanding the causes, such as excessive imports or low exports, and the consequences, such as economic imbalance and currency devaluation, is critical for the exam.

How should students approach revision of macroeconomic policies?

Students should revise both expansionary policies (fiscal, monetary, and supply-side) as well as contractionary policies. While expansionary policies boost growth, contractionary policies, like raising interest rates to control inflation, are crucial topics for exams, especially with recent global economic trends.

What are the recent trends in fiscal policy, and why are they important for the exams?

Recent fiscal policies, particularly rising budget deficits and austerity measures, are key themes. Countries like Argentina and the UK have used contractionary fiscal policy to reduce deficits. Understanding the effectiveness of such policies and their broader economic impact is important for the exams.

What are some of the challenges associated with financial market regulation?

The significance of financial market regulation has grown due to events like the 2023 bank failures in the US and Europe. Regulation aims to prevent systemic risk and bank failures, and understanding its role in macroeconomic stability is critical for the exams.

Why is it important to study the pros and cons of inflation and deflation for the exam?

Inflation and deflation have significant economic consequences. Recent trends, such as rampant inflation in the UK and deflationary pressures in China, highlight the importance of understanding both the benefits and drawbacks of these phenomena in the context of global economics.