Economics 9708 · AS & A Level · Aggregate demand and aggregate supply
Explain how the circular flow of income in an economy alters when it changes from a closed to an open economy and judge what affects the size of the change.
Assess whether the possible benefits of free trade always outweigh the case for protectionism.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3): The circular flow of income is the route income takes around an economy from firms to households and then back to firms in a continuous process.” …