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A-Level Economics Essays

50 A-Level economic essays and model answers.
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The effects of an appreciation

An appreciation means an increase in the value of a currency against other foreign currency. An appreciation makes exports more expensive and imports cheaper. An example of an appreciation in the value of the Pound 2009 – 2012 Jan 2009 If £1 = €1.1 June 2012 £1 = €1.27 In this case, we can say …

Over time, the IMF has been subject to a range of criticisms, generally focused on the conditions of its loans. The IMF has also been criticised for its lack of accountability and willingness to lend to countries with bad human rights records. Criticisms of the IMF include 1. Conditions of loans On giving loans to …

The J Curve effect a depreciation in the exchange rate can cause a deterioration of the current account in the short-term (because demand is inelastic). However, in the long-term, demand becomes more price elastic and therefore, the current account begins to improve. The J-Curve is related to the Marshall-Lerner condition, which states: If (PED x …

Debt as % of GDP

Readers Question: Why is debt related to GDP? Debt to GDP shows how significant the debt is relative to the size of the economy. This is important because it affects The size of debt compared to tax revenues. For example in 2018, the gross level of US public debt was $21 trillion. But, with a …

Readers Question: What do you understand by the terms ‘monetary policy’ and ‘fiscal policy’? Explain with reference to a country of your choice:- a) How these policies have been used by the government to try to achieve its objectives Definition – monetary and fiscal policy Monetary policy is managed by the Bank of England. They have …

Should the government be concerned if the CPI rises to 5%? Costs of Inflation The Government set the MPC a target for CPI of 2.% +/-1. It believes inflation higher than 3.0% is potentially damaging to the economy. Decline in relative competitiveness. If inflation in the UK is higher than elsewhere, then UK goods will …

A look at whether we actually need economic growth in a modern economy. Readers Question: When I compare my life with my fathers at that time the conditions are near identical in the greater things or life. I work the same hours, maybe more. I have the same holidays. I have a similar standard of …

A-Level Economics Essays

The effects of an appreciation

Criticisms of IMF

J-Curve Effect

Debt as % of GDP

Monetary and Fiscal Policy in the UK

Is Inflation Harmful?

Do we need economic growth in a modern economy?