© International Baccalaureate Organization 2025
All rights reserved. No part of this product may be reproduced in any form or by any
electronic or mechanical means, including information storage and retrieval systems,
without the prior written permission from the IB. Additionally, the license tied with this
product prohibits use of any selected files or extracts from this product. Use by third
parties, including but not limited to publishers, private teachers, tutoring or study services,
preparatory schools, vendors operating curriculum mapping services or teacher resource
digital platforms and app developers, whether fee-covered or not, is prohibited and is a
criminal offense.
More information on how to request written permission in the form of a license can be
obtained from https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-
license/.
© Organisation du Baccalauréat International 2025
Tous droits réservés. Aucune partie de ce produit ne peut être reproduite sous quelque
forme ni par quelque moyen que ce soit, électronique ou mécanique, y compris des
systèmes de stockage et de récupération d’informations, sans l’autorisation écrite
préalable de l’IB. De plus, la licence associée à ce produit interdit toute utilisation de tout
fichier ou extrait sélectionné dans ce produit. L’utilisation par des tiers, y compris, sans
toutefois s’y limiter, des éditeurs, des professeurs particuliers, des services de tutorat ou
d’aide aux études, des établissements de préparation à l’enseignement supérieur, des
fournisseurs de services de planification des programmes d’études, des gestionnaires de
plateformes pédagogiques en ligne, et des développeurs d’applications, moyennant
paiement ou non, est interdite et constitue une infraction pénale.
Pour plus d’informations sur la procédure à suivre pour obtenir une autorisation écrite
sous la forme d’une licence, rendez-vous à l’adresse https://ibo.org/become-an-ib-school/
ib-publishing/licensing/applying-for-a-license/.
© Organización del Bachillerato Internacional, 2025
Todos los derechos reservados. No se podrá reproducir ninguna parte de este producto
de ninguna forma ni por ningún medio electrónico o mecánico, incluidos los sistemas de
almacenamiento y recuperación de información, sin la previa autorización por escrito del
IB. Además, la licencia vinculada a este producto prohíbe el uso de todo archivo o
fragmento seleccionado de este producto. El uso por parte de terceros —lo que incluye,
a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o
ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y
entidades que presten servicios de planificación curricular u ofrezcan recursos para
docentes mediante plataformas digitales—, ya sea incluido en tasas o no, está prohibido
y constituye un delito.
En este enlace encontrará más información sobre cómo solicitar una autorización por
escrito en forma de licencia: https://ibo.org/become-an-ib-school/ib-publishing/licensing/
applying-for-a-license/.
,Economics
Higher level
Paper 3
10 November 2025
Zone A morning Zone B morning Zone C morning
Candidate session number
1 hour 45 minutes
Instructions to candidates
y Write your session number in the boxes above.
y You are permitted access to a calculator for this paper.
y Do not open this examination paper until instructed to do so.
y Answer all the questions.
y Answers must be written within the answer boxes provided.
y Unless otherwise stated in the question, all numerical answers must be given exactly or correct
to two decimal places.
y You must show all your working.
y Use fully labelled diagrams where appropriate.
y The maximum mark for this examination paper is [60 marks].
8825 – 5209
18 pages © International Baccalaureate Organization 2025
20EP01
, –2– 8825 – 5209
Answer all the questions. Answers must be written within the answer boxes provided.
1. Table 1 shows the gross domestic product (GDP) of the United States of America (USA)
economy from 2020 to 2023. The USA is not the fastest growing economy in the world, but
it is the largest. It also has the largest budget deficit and the largest current account deficit in
the world. As a result, the actions of its central bank, the Federal Reserve, always make news.
Table 1
2020 2021 2022 2023
Real GDP 20 724 21 847 21 989 22 668
in billions of USA dollars (USD)
Economic growth rate — 5.42 0.65
(%)
(a) (i) Using Table 1, calculate the annual GDP growth rate for 2023. Enter your result
in Table 1. [1]
..........................................................................
..........................................................................
(This question continues on the following page)
20EP02
, –3– 8825 – 5209
(Question 1 continued)
The Federal Reserve has a target inflation rate of 2 %.
The US Bureau of Labor Statistics, however, recorded that the inflation rate from
January 2023 to January 2024 was 3.1 %, well above the target rate. Over the same
period, households in the USA could borrow money from a commercial bank at a
nominal interest rate of 8.5 %.
(ii) Calculate the real interest rate for households between January 2023 and
January 2024. [1]
..........................................................................
..........................................................................
(iii) Explain how commercial banks create money. [4]
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
(This question continues on the following page)
Turn over
20EP03
All rights reserved. No part of this product may be reproduced in any form or by any
electronic or mechanical means, including information storage and retrieval systems,
without the prior written permission from the IB. Additionally, the license tied with this
product prohibits use of any selected files or extracts from this product. Use by third
parties, including but not limited to publishers, private teachers, tutoring or study services,
preparatory schools, vendors operating curriculum mapping services or teacher resource
digital platforms and app developers, whether fee-covered or not, is prohibited and is a
criminal offense.
More information on how to request written permission in the form of a license can be
obtained from https://ibo.org/become-an-ib-school/ib-publishing/licensing/applying-for-a-
license/.
© Organisation du Baccalauréat International 2025
Tous droits réservés. Aucune partie de ce produit ne peut être reproduite sous quelque
forme ni par quelque moyen que ce soit, électronique ou mécanique, y compris des
systèmes de stockage et de récupération d’informations, sans l’autorisation écrite
préalable de l’IB. De plus, la licence associée à ce produit interdit toute utilisation de tout
fichier ou extrait sélectionné dans ce produit. L’utilisation par des tiers, y compris, sans
toutefois s’y limiter, des éditeurs, des professeurs particuliers, des services de tutorat ou
d’aide aux études, des établissements de préparation à l’enseignement supérieur, des
fournisseurs de services de planification des programmes d’études, des gestionnaires de
plateformes pédagogiques en ligne, et des développeurs d’applications, moyennant
paiement ou non, est interdite et constitue une infraction pénale.
Pour plus d’informations sur la procédure à suivre pour obtenir une autorisation écrite
sous la forme d’une licence, rendez-vous à l’adresse https://ibo.org/become-an-ib-school/
ib-publishing/licensing/applying-for-a-license/.
© Organización del Bachillerato Internacional, 2025
Todos los derechos reservados. No se podrá reproducir ninguna parte de este producto
de ninguna forma ni por ningún medio electrónico o mecánico, incluidos los sistemas de
almacenamiento y recuperación de información, sin la previa autorización por escrito del
IB. Además, la licencia vinculada a este producto prohíbe el uso de todo archivo o
fragmento seleccionado de este producto. El uso por parte de terceros —lo que incluye,
a título enunciativo, editoriales, profesores particulares, servicios de apoyo académico o
ayuda para el estudio, colegios preparatorios, desarrolladores de aplicaciones y
entidades que presten servicios de planificación curricular u ofrezcan recursos para
docentes mediante plataformas digitales—, ya sea incluido en tasas o no, está prohibido
y constituye un delito.
En este enlace encontrará más información sobre cómo solicitar una autorización por
escrito en forma de licencia: https://ibo.org/become-an-ib-school/ib-publishing/licensing/
applying-for-a-license/.
,Economics
Higher level
Paper 3
10 November 2025
Zone A morning Zone B morning Zone C morning
Candidate session number
1 hour 45 minutes
Instructions to candidates
y Write your session number in the boxes above.
y You are permitted access to a calculator for this paper.
y Do not open this examination paper until instructed to do so.
y Answer all the questions.
y Answers must be written within the answer boxes provided.
y Unless otherwise stated in the question, all numerical answers must be given exactly or correct
to two decimal places.
y You must show all your working.
y Use fully labelled diagrams where appropriate.
y The maximum mark for this examination paper is [60 marks].
8825 – 5209
18 pages © International Baccalaureate Organization 2025
20EP01
, –2– 8825 – 5209
Answer all the questions. Answers must be written within the answer boxes provided.
1. Table 1 shows the gross domestic product (GDP) of the United States of America (USA)
economy from 2020 to 2023. The USA is not the fastest growing economy in the world, but
it is the largest. It also has the largest budget deficit and the largest current account deficit in
the world. As a result, the actions of its central bank, the Federal Reserve, always make news.
Table 1
2020 2021 2022 2023
Real GDP 20 724 21 847 21 989 22 668
in billions of USA dollars (USD)
Economic growth rate — 5.42 0.65
(%)
(a) (i) Using Table 1, calculate the annual GDP growth rate for 2023. Enter your result
in Table 1. [1]
..........................................................................
..........................................................................
(This question continues on the following page)
20EP02
, –3– 8825 – 5209
(Question 1 continued)
The Federal Reserve has a target inflation rate of 2 %.
The US Bureau of Labor Statistics, however, recorded that the inflation rate from
January 2023 to January 2024 was 3.1 %, well above the target rate. Over the same
period, households in the USA could borrow money from a commercial bank at a
nominal interest rate of 8.5 %.
(ii) Calculate the real interest rate for households between January 2023 and
January 2024. [1]
..........................................................................
..........................................................................
(iii) Explain how commercial banks create money. [4]
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
..........................................................................
(This question continues on the following page)
Turn over
20EP03
