Net trade (X-M)

Case study · UK balance of trade and inflation

Evaluate the main influences on the UK’s net trade balance.

Evaluate the likely macroeconomic consequences of a significant fall in global oil prices.

Case study · Ghana – cocoa and chocolate production

Discuss factors influencing the level of aggregate demand in Ghana. Use an aggregate demand and aggregate supply diagram in your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · UK monetary policy since the Global Financial Crisis of 2008

Explain one reason why ‘the fall in the exchange rate of the British pound’ (Extract A, line 21) is likely to increase inflation.

Case study · UK balance of trade and inflation

With reference to Extract A, assess the likely impact of a rise in the value of exports on the UK economy.

Case study · UK government budget and household consumption

Explain the likely effect of a fall in the exchange rate of the British pound on aggregate demand. Refer to Extract A in your answer.

Case study · UK inflation and economic growth

With reference to the first paragraph of Extract A and Figure 1, explain how the change in the exchange rate of the pound has ‘contributed to rising inflation’ (Extract A, line 4).

Case study · UK inflation and economic growth

With reference to Figure 3, assess the likely impact of the change in the value of exports, since mid-2016, on the economic growth of the UK. Use an aggregate demand and aggregate supply diagram in your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · UK economic recovery

With reference to Figure 1, explain the term ‘net trade’.

Case study · UK economic recovery

With reference to the information provided and your own knowledge, assess the likely causes of the UK’s trade deficit.

Case study · UK incomes, inflation and monetary policy

With reference to Extract A, explain the likely effect of a rise in the value of the pound on aggregate demand.

Explain one likely reason for the deficit in the UK balance of trade in goods and services. Refer to the chart on page 10 in your answer.

Define the term ‘exchange rate’.

Annotate the aggregate demand (AD) and aggregate supply (AS) diagram below to show the likely impact of an improvement in net trade on the equilibrium level of real output and the price level.

Diagram needed. Open the original question paper for the diagram ↗

Which one of the following represents the percentage change in the £ sterling and US$ exchange rate?