How did the balance on Turkey’s current account change between 2012 and 2013?
Use a production possibility curve diagram to illustrate the planned result of structural reforms in Turkey.
With the aid of a demand and supply diagram, show how the expected change in US interest rates was likely to cause the US dollar ‘to continue to rise’.
Consider whether the result of the interest rate changes in the US was likely to be ‘harmful for Turkey’s economy’.
Explain two factors that determine how the rise in consumer prices between 2013 and 2014 shown in Fig. 1 might affect the total value of Turkey’s exports.
Discuss how ‘tight fiscal policy’ could be expected to help Turkey achieve the first priority of the MTP, and assess how effective this is likely to be.