The table shows data for households in a small open economy in two years, three years apart.
| Economic indicator | Earlier year | Three years later |
|---|---|---|
| Real household disposable income index (earlier year = 100) | 100 | 109 |
| Total household expenditure (£ billion) | 180 | 210 |
| Share of household expenditure spent on imported goods (%) | 24 | 31 |
Assume that exports and all other current account flows are unchanged.
Using the data, calculate the change in household expenditure on imported goods between the two years. Give your answer in £ billion.
Using the data, explain how the changes shown are likely to affect the country's current account balance.
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.