The government of Lydora has forecast its transactions with other countries for next year. The forecast figures are shown below. Receipts from overseas are positive and payments to overseas are negative.
| Current-account entry | £ billion |
|---|---|
| Exports of goods | +68 |
| Imports of goods | -84 |
| Services balance | +13 |
| Primary income balance | +1 |
| Secondary income balance | -2 |
The government aims for a current-account surplus of £5 billion next year. Assume that all entries except the services balance stay as forecast.
Calculate the increase in the services balance needed for Lydora to achieve this surplus.
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.