Sign in Subscribe
1 min read

J-Curve | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

  • Normally, when your currency depreciates
  • exports increase and imports fall so balance of payments improves
  • However,
  • The J-curve shows that, when your currency depreciates
  • the balance of payments worsens.
  • This is because exports and imports are inelastic at first and they take time to adjust - even if exchange rates change.

You might also like...

27
Feb

Marshall-Lerner Condition | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

* The Marshall Lerner condition states that * if the currency depreciates * balance of payments will improve * if * ped for imports and
27
Feb

Impact of a Current Account Deficit | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

* Summary * AD left shift * Evaluation * sign of high incomes - luxury goods being imported * pound will fall and current account
2 min read
22
Feb

Expansionary Monetary Policy | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

Monetary policy is the use of interest rates to influence the aggregate demand and therefore the inflation rate of an
1 min read
12
Feb

Minimum Wage | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

One policy the government could use to reduce differences in wages is to increase the mininum wage for low earners.
1 min read
12
Feb

Externalities | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

Negative Externalities in Consumption The diagram shows a market failure (misallocation of resources) with fast food. Fast food is a
2 min read