How can I get 8 points out of 8 in Question d of the Economics HL Paper 2?
It is important that you always get back to article and you develop the arguments mentioned. If for example, you get a question on how to cure a curernt account deficit, I would suggest to:
1. Read carefully the article given and highlight the key points for your evaluation. Example: Inflation is at 10%, therefore a contractionary monteary policy can be used to reduce imports without incurring in defaltion...
2. Start with a brief introduction, explain what a current account defici is, give a definition. NB: You should not spend more than 2 minutes in doing so, as you can get only 1/2 points and time is running!
Example: The current acount is the measure of the Balance of trade (Exports minus Imports), Net Current Transfer and Net Investment income. A defict occurs when Imports are gretaer than Exports. This has a negative effect on the economy as Imports represent a net leakaege to the economy, currenty can depreciate, ....
3. Make a small plan of your evaluation. This is the most important part of the essay. If you do not make examples citing the source you wil not get more than 5 points overall. Hence, I advise you use some data e.g "As mentioned in paragraph 3, inflation in the last year rose to 10%, leading to...". I suggest you provide AT LEAST three policies and you evaluate them.
4. Do not forget to inlcude diagrams and label them correctly, if you forget to write "Q." or "P." you might lose one point.
- Conclude with one or two sentences summing up your evaluation. Example: "After having evaluated the effects of a contractionary fiscal, monetary, supply side and protectionist policies, I believe that the most succesful in achieving this objective would be ...". This because it has a positive effect on all the Macro Indicators, e.g. Income redistribution, Unemployment, Infaltion, GDP, and BOT".
Good luck!
