Balance of Payments and Policies to Correct Disequilibrium

With the help of a diagram, evaluate the effectiveness of the use of expenditure-switching policies to reduce a current account deficit on the balance of payments.

“The use of tariffs is the most effective way to correct a balance of payments deficit.”

With the help of a diagram, evaluate this statement.

Some high-income countries have introduced a policy of high tariffs on some imports to reduce the negative effects of globalisation on their economies.

With the help of a diagram, evaluate this policy.

Expenditure-reducing policies will reduce a balance of payments deficit but will also cause significant unemployment.

Evaluate this statement.

An increase in a government’s budget surplus will increase unemployment in the short run but it will make it easier to control a balance of payments deficit on the current account in the long run.

Evaluate this statement.

To what extent do you agree that it is not possible to solve a persistent balance of payments deficit without sacrificing other key macroeconomic aims?

To what extent do you agree that it is not possible to achieve economic growth without simultaneously causing a balance of payments deficit?

Evaluate the likely macroeconomic effects of the switch to EV for both Saudi Arabia and Singapore.

Evaluate the likely impact of a return to the migration levels prior to 2019 on the macroeconomic performance of the US economy.

The article describes the effects of a single euro currency on the changes in the domestic policies of Spain and Greece.

Discuss the possible effects on the Spanish and Greek economies that these policy changes might have.