AS and A Level: Economics

Conclusion analysis

Good conclusions usually refer back to the question or title and address it directly - for example by using key words from the title.
How well do you think these conclusions address the title or question? Answering these questions should help you find out.

1. Do they use key words from the title or question?
2. Do they answer the question directly?
3. Can you work out the question or title just by reading the conclusion?

• Discuss the factors which determine freely floating exchange rates. Discuss the view that an appreciation of the currency is always beneficial and depreciation always harmful.

  "In conclusion, it can be said that the freely floating exchange rate has more advantages than disadvantages which make it a good theory to adapt in real life whereas in the other we have confirmed that an appreciation has only positive aspects which can benefit the currency and a depreciation in the currency is very harmful for a country's currency because of its negative aspects. Friday 29th November 12th Grade Economics Homework IB Economics"

• Using the data and your economic knowledge, evaluate the contribution that the growth of government expenditure may make to the U.K. economic performance.

  "In conclusion, the growth of government expenditure does have a major implication on the U.K.'s economic performance; however, it isn't the only factor that affects the country's economy e.g. consumer confidence in AD. Judging by the government's macroeconomic objectives, it is fair to say if there is a change in government expenditure it can have a significant effect on their objectives i.e. short and long run economic growth. However, as stated, consumer confidence is the major component of AD and even if there is a significant rise in government spending and intervention, it does not necessarily result in a more efficient economy, as seen currently in the global economic depression."

• Discuss the extent to which a reduction in the rate of interest can be effective in increasing consumer expenditure and investment.

  "In conclusion, a cut in interest rates is a very simple solution to increase consumer expenditure and investment levels in the short term. However there are factors that reduce the effectiveness of a reduction of interest rates such as the fact that interest rates will lead to increasing inflation and the effects is not sustainable as once the economy is at full capacity then no further expenditure and investment levels in the future can be achieved. There are also other alternatives to increases consumer expenditure and investment levels such as the introduction of supply side policies, for example increases in provision of education. \"