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Edexcel A-Level Economics A2 4.3.3 1c Measures to Reduce a Countrys Imbalance on the Current Account Questions

Practise judging policies to reduce current account imbalances, linking measures to imports, exports, competitiveness and country constraints.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • define a current account deficit and set the policy aim of reducing net import expenditure
  • analyse deflationary fiscal policy through disposable income, import demand and aggregate demand
  • analyse higher interest rates through borrowing, saving and imports, including possible currency appreciation
  • explain how education, infrastructure and investment incentives raise productivity and export competitiveness
  • analyse depreciation using export and import prices, PED, Marshall-Lerner and possible J-curve effects

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