For the question asking about the factors which cause a CA deficit I couldnt think of anything aside from appreciating current so I wrote:
-Aid giving. I explained this as being where a country gives aid to another and in the manor aid is given it is not intended to be returned back to the giving country. This is a leakage and Current transfers is a component of the current account of balance of payments. As such, if the current transfers is in deficit would that not result in the overall CA also going into deficit?

How many marks do you think I would get for that point, if any at all, thanks

Reply 587

keynes24

10

Original post by BrwnSugR1

For the question asking about the factors which cause a CA deficit I couldnt think of anything aside from appreciating current so I wrote:
-Aid giving. I explained this as being where a country gives aid to another and in the manor aid is given it is not intended to be returned back to the giving country. This is a leakage and Current transfers is a component of the current account of balance of payments. As such, if the current transfers is in deficit would that not result in the overall CA also going into deficit?

How many marks do you think I would get for that point, if any at all, thanks

sounds good

Reply 588

Abbas10

2

This was my essay plan -

Definition of Taxation + Economic growth

Yes -
Direct tax - Shift in AD - short term economic growth

Indirect taxt - Shift in AS - long term economic growth

However,
-AD rises faster then AS = inflation
-Spare capacity, if increase in AD, but not enough factors of production = inflation but no economic growth

Overall it depends on -
-Time gap, may take long to take effect
-Depends on how much tax is reduced, if reduced minimal then no effect
-Depends on what tax was before, if there's no big of a change = less effect

What do you guys think I've got out of 18 (praying for atleast 10 or 12 lol)

Reply 589

Yousf

13

Original post by Abbas10

This was my essay plan -

Definition of Taxation + Economic growth

Yes -
Direct tax - Shift in AD - short term economic growth

Indirect taxt - Shift in AS - long term economic growth

However,
-AD rises faster then AS = inflation
-Spare capacity, if increase in AD, but not enough factors of production = inflation but no economic growth

Overall it depends on -
-Time gap, may take long to take effect
-Depends on how much tax is reduced, if reduced minimal then no effect
-Depends on what tax was before, if there's no big of a change = less effect

What do you guys think I've got out of 18 (praying for atleast 10 or 12 lol)

Looks like a perfect answer/structure. If you followed that structure and elaborated well on the points you made. I dont see why you cant get near full marks.