I am having stuck answering this question Watch

abi98
Badges: 0
Rep:
?
#1
Report Thread starter 4 years ago
#1
Assess the impact on the performance of the UK economy of a significant increase in exports and a reduction in imports of goods and services.
0
reply
easyaspirsquared
Badges: 12
Rep:
?
#2
Report 4 years ago
#2
I'm not sure how many marks this question is worth so i'll just explain the theory

remember that economic growth is shown by an increase in real GDP. GDP can be measure by either total output, income or expenditure in an economy, but we tend to measure by output (however, all of these should be equal anyway considering the circular flow model which i assume you've learned?)

Think back to factors that affect aggregate demand. Net exports are one of these factors. As exports increase and/or imports decrease, this causes an increase in AD. AD increase results in increased output (as it will cause an extension in aggregate supply) and therefore there will be increased output-> therefore economic growth.

It all comes down to linking exports with AD which will affect GDP hope this helps!
0
reply
abi98
Badges: 0
Rep:
?
#3
Report Thread starter 4 years ago
#3
thanks
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • University of Hertfordshire
    All Subjects Undergraduate
    Wed, 11 Dec '19
  • University of Lincoln
    Undergraduate Open Day Undergraduate
    Wed, 11 Dec '19
  • Bournemouth University
    Undergraduate Mini Open Day Undergraduate
    Wed, 11 Dec '19

Do you work while at uni?

Yes I work at university (23)
35.38%
No I don't (29)
44.62%
I work during the holidays (13)
20%

Watched Threads

View All