Cambridge International (CAIE) · 6 International economic issues (AS) · 6.5 Policies to correct imbalances in the current account

Cambridge International (CAIE) Economics past paper questions: Policies to correct imbalances in the current account

Every Cambridge International (CAIE) question on Policies to correct imbalances in the current account from 2023 to 2025: 4 essays, 1 data response question and 6 multiple choice questions. It covers 6.3 Current account of the balance of payments, 6.2 Protectionism, 5.3 Monetary policy and 4.3 Aggregate demand and aggregate supply analysis. Each question links to its paper, mark scheme and examiner report.

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Subtopics6.3 Current account of the balance of payments 66.2 Protectionism 25.3 Monetary policy 14.3 Aggregate demand and aggregate supply analysis 1

Essay questions on policies to correct imbalances in the current account

AS Paper 2, November 2025, Q4(b)OptionalAssess12 marks

Assess the extent to which the use of supply-side policy would be the best way to reduce a deficit on the current account of the balance of payments.

Question paper p.4 Mark scheme p.21 Open in the tool Practise the AD/AS diagram

AS Paper 2, March 2024, Q4(b)OptionalAssess12 marks

Assess whether contractionary fiscal policy is likely to be the best way to reduce a current account deficit on the balance of payments.

Question paper p.4 Mark scheme p.15 Open in the tool Practise the AD/AS diagram

AS Paper 2, June 2023, Q4(b)OptionalAssess12 marks

Assess whether protectionism is the best way to correct a deficit in the current account of the balance of payments.

Question paper p.5 Mark scheme p.19 Examiner report p.11 Open in the tool

AS Paper 2, March 2023, Q5(b)OptionalAssess12 marks

Assess whether supply-side policies are the most effective way to correct a deficit on the current account of the balance of payments of an economy.

Question paper p.4 Mark scheme p.18 Examiner report p.5 Open in the tool Practise the AD/AS diagram

Data response questions on policies to correct imbalances in the current account

AS Paper 2, November 2024, Q1(b)Consider4 marks

Case study: Can economic growth in Chile reduce income and wealth inequality?

Consider the likely success of one policy that Chile could use to reduce the imports of consumer goods.

Question paper p.3 Mark scheme p.9 Open in the tool

Multiple choice questions

AS Paper 1, June 2025, Q29
A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit?
AS Paper 1, November 2024, Q26
Which policy is most likely to reduce a balance of payments deficit without causing inflation?
AS Paper 1, June 2024, Q24
What would be the best policy for a country to reduce a balance of payments deficit?
AS Paper 1, March 2024, Q25
A government decides to allow the country’s currency to depreciate to remove the deficit on its current account of the balance of payments. What is the most likely reason why this would not work?
AS Paper 1, June 2023, Q23
Which combination of policies would be most effective in reducing a balance of payments current account surplus?
AS Paper 1, March 2023, Q30
A government raises interest rates to improve the current account of the balance of payments. What might reduce the effectiveness of this policy?

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Essay questions on policies to correct imbalances in the current account

Data response questions on policies to correct imbalances in the current account

Multiple choice questions

More Cambridge International (CAIE) topics: 6 International economic issues (AS)