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2.6 The international economy (A-level only)

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Question 114

The United States has experienced a persistent deficit on its balance of trade in goods for many decades. While expenditure-switching policies like tariffs have often been discussed, macroeconomic policymakers can also utilize expenditure-reducing policies to address this external imbalance. However, central banks and governments often prioritize domestic objectives like GDP growth and full employment.

Explain how expenditure-reducing policies can be used to reduce a deficit on a country's balance of trade in goods and services.

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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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