forecasts that Indonesia will comfortably outperform its export-dependent regional peers in GDP growth' (Extract B).","markscheme":"- Identifies that Indonesia is less reliant on exports and more dependent on robust domestic consumption compared to its export-oriented peers B1\n- Refers to contextual evidence of external vulnerability for peers, such as South Korea's reliance on semiconductors/automotives and susceptibility to global trade restrictions C1\n- Refers to contextual evidence of Indonesia's domestic resilience, such as private consumption accounting for over 50% of GDP or targeted energy subsidies C1\n- Explains that weaker global demand leads to a contraction in net exports $(X - M)$, which reduces Aggregate Demand ($AD = C + I + G + (X - M)$) and lowers GDP growth for export-dependent nations M1\n- Explains that Indonesia’s high share of domestic consumption ($C$) acts as a buffer, meaning its total Aggregate Demand (and thus real GDP growth) remains more stable and higher than its peers A1","marks":5,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"5d587b2d-2ca1-467a-b820-e2126910a967","revisionId":"907fc42c-3d1a-4dba-a963-a7f6f25ebce9","questionNumber":null,"questionType":"LA","specification":"","difficulty":4,"difficultyBand":"medium","totalMarks":4,"sourceTitle":null,"calculatorUse":null,"parts":[{"id":"c8403aef-e6c4-41a0-8f6d-0648907b9ecc","label":null,"content":"Explain the likely effect of a significant increase in personal income tax rates on a country's net trade balance.","markscheme":"- Explains that an increase in personal income tax rates will reduce households' disposable income B1\n- Explains that lower disposable income leads to a decrease in overall consumer spending (consumption) M1\n- Explains that a proportion of this reduced spending would have been spent on imported goods and services, causing imports ($M$) to decrease M1\n- Concludes that because imports fall (while exports $X$ remain constant in the short term), the net trade balance ($X - M$) will improve, moving towards a surplus or a smaller deficit A1","marks":4,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"6a8a4ea6-5440-4728-adc4-966f1c8206b2","revisionId":"a742c1e4-9e09-4c67-ada2-9e4d4da31f42","questionNumber":null,"questionType":"LA","specification":"$43","difficulty":3,"difficultyBand":"medium","totalMarks":5,"sourceTitle":null,"calculatorUse":null,"parts":[{"id":"2a7b3625-beef-450c-bcb0-dd9d2420afb2","label":null,"content":"With reference to Extract B, explain the likely effect of a rise in the value of the Norwegian Krone (NOK) on aggregate demand.","markscheme":"- Identifies the components of Aggregate Demand using the formula $AD = C + I + G + (X - M)$, where $X$ represents exports and $M$ represents imports B1\n- Explains that a rise in the value (appreciation) of the Norwegian Krone makes Norwegian exports more expensive to foreign buyers and imports cheaper to domestic consumers M1\n- Uses evidence from Extract B to support the explanation, such as referencing the Krone acting as a \"headwind for traditional mainland export sectors\" or leading to \"lower import costs\" B1\n- Analyzes how a decline in export volume ($X$) and an increase in import volume ($M$) leads to a reduction in net exports $(X - M)$ M1\n- Concludes that the fall in net exports $(X - M)$ reduces overall aggregate demand, shifting the AD curve to the left A1","marks":5,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null}],"subjectCode":"a_level_economics__edexcel_a","summaries":[{"id":"0cfff90e-380f-482c-8bc3-36b1e363fc62","difficultyBand":"medium","calculatorUse":null,"totalMarks":5},{"id":"266e0f0

2.2.5 Net trade (X-M)

Question 5

2.2.5 Net trade (X-M) Questions

2.2.5 Net trade (X-M)

Question 5

2.2.5 Net trade (X-M) Questions