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2.6 The international economy (A-level only)

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Question 104

Context 2: External Imbalances and Structural Vulnerabilities

Extract D (lines 14–17) states: 'For a highly import-dependent nation, a persistent divergence between weak external demand for domestic services and a rapid, credit-fueled surge in consumer import spending poses severe risks to macroeconomic stability.'

Using the data in the extracts and your economic knowledge, assess the possible effects on an economy's macroeconomic performance if it experiences a sustained and significant widening of its current account deficit.

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Markscheme

2.6 The international economy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.6 The international economy (A-level only)

310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.

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