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paper 3 recap delete after

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10 marker

3 paragraphs

  1. DESCRIBE THE DATA
  2. EXPLAIN HOW THE DATA LINKS TO THE QUESTION
  3. 1 easy limitation
  4. CONCLUSION
    1. YES or NO

15 marker

  1. DIAGRAM

25 marker

  1. BALANCE OF PAYMENTS/ EXCHANGE RATES
    1. is it recommended to have a weak currency
      1. YES
        1. exports more attractive
        2. AD shift right
          1. 4 objectives
          2. INFLATION
      2. NO
        1. SRAS SHIFTS LEFT
        2. COST OF PRODUCTIONS RISE A LOT
        3. COST PUSH INFLATION
        4. THIS HAPPENED START OF 2024
        5. Firms are dependent on raw materials such as oil
        6. Passed costs on to consumers
        7. MARSHALL LERNER CONDITIION
        8. 4 OBJECTIVES
    2. is it recommended to fix a c. a deficit or leave it
      1. LEAVE IT
        1. AD = C, I, G, X-M
        2. BOOM
        3. living standards are higher
        4. inflation is high
        5. buy imports
        6. OTHER 3 OBJECTIVES
      2. it fixes itself
        1. if exports are low and imports are high
        2. currency devalues due to low demand
        3. and then naturally exports become more competitive
      3. FIX IT
        1. AD fall
        2. macro objectives
        3. PEOPLE LOSING JOBS
        4. STRUCTURAL UNEMPLOYMENT
        5. free trade
    1. what is best policy to fix a c. a deficit
      1. contractionary fiscal policy EXPENDITURE REDUCING
        1. lower G or higher taxes
        2. AD shifts left
        3. Deflation
        4. lower prices in the UK
        5. messes up other objectives
      2. lower interest rates
        1. lower exchange rates
          1. SRAS LEFT
      3. SUPPLY SIDE POLICIES
      4. TARIFFS
        1. economies of scale
  2. DEVELOPMENT
    1. development is most commonly measured by HDI
      1. real GDP per capita
      2. life expectancy at birth
      3. average years of schooling
    2. MARKET BASED POLICIES
      1. lower taxes/ removing minimum wages
      2. reduces cost of production
      3. ATTRACTS FDI
      4. when an MNC brings technology into a country and engages in a long lasting relationship/ project in that economy
        1. increase capital stock
        2. more growth
        3. more jobs
        4. more income
        5. more savings
        6. more investment
        7. more capital stock
        8. HARROD DOMAR MODEL
          1. MNCs may exploit workers
          2. through low pay
          3. poor working conditions
          4. contribute low taxes
          5. BAD HEALTH AND EDUCATION
    3. INTERVENTIONIST BASED POLICIES
      1. SPENDING ON HEALTH AND EDUCATION AND INFRASTRUCTURE
      2. DEVELOPMENT TRAP: low incomes low health
      3. national debt as % of GDP
      4. government failure
        1. excessive cost
        2. inadequate information
      5. ASK FOR AID
    1. TARIFFS
      1. diagram
      2. they have comparative advantage in commodities
      3. this is useless as they are price volatile (weather) and income inelastic
      4. they should try to get into the MANUFACTURING SECTOR
      5. TRAINERS/ CHAIRS
      6. increases domestic demand and creates jobs
      7. RETALIATION
  3. INEQUALITY
    1. is it worth intervening or not
      1. YES
        1. macro point: poor living standards and confidence and uncertainty
        2. inequality is bad for everyone
          1. gov, rich people, poor people
          2. negative externalities e.g. crime, low tax contribution
      2. NO
        1. inequality through wage differentials
        2. may be earned
        3. MRP
        4. creates incentives
    2. best policies to reduce inequality
      1. progressive tax and benefit system
      2. higher minimum wages
      3. education and training