20 thoughts on “Current Account Deficit – Expenditure Reducing and Expenditure Switching Policies

  1. Might you say that if the economy is operating at YFE and at the vertical part on the LRAS curve, a fall in AD may lead to a fall in inflation, but no fall in income, and thus increase real incomes at the same time, leading to even more imports and a further worsening of the current account?

  2. Im currently in my final year of the new aqa specification. Would you recommend using past papers from the previous spec for my revision or should I use other materials such as questions from revision guides/textbooks? Keep up the good work:)

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