The government of Dunmere plans to support its creative and digital services firms, such as animation studios and software developers, so they can sell more services to overseas customers. A briefing gives the following current figures and forecasts for five years after the plan is introduced.
| Economic indicator | Current | Forecast with plan |
|---|---|---|
| Exports of services | £280 billion | £310 billion |
| Imports of services | £295 billion | £306 billion |
| Current account balance | -£22 billion | -£3 billion |
The briefing claims that the plan will reduce Dunmere's current account deficit. Analyse how the figures in the table support this claim and what could limit the improvement.
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.