AQA past paper:
Evaluate the potential impact on the economic growth of the UK economy if it were to adopt the single European currency.
拿到题目，首先找下关键字，比如”evaluate”, “potential impact”, “economic growth”,“single European currency”.
“Potential impact”: 说到impact，尤其是学经济的同学，一定要用一种辩证思维去看问题。影响分好坏，所以我们对于事物的双面都要进行分析。好处有哪些，伴随的坏处又有哪些，都是需要我们论述的。
“economic growth”,“single European currency”: 向同学们提示了这篇essay的核心知识点，所以同学们在下笔之前一定要从脑海里调用下可能会在essay中用到的知识点。梳理下零碎知识点之间的关系，从而安排下essay的结构。
第一部分：谈谈single European currency对economic growth in UK的积极影响，分点论述，每个点单独占据一个段落。
The adoption of single European currency can benefit the economic growth of the UK economy.
Firstly, a single currency lowers transaction costs of trade, which promotes exports. The export is important to UK as it accounts for 60% of UK’s trade. Allowing for the existing low transaction cost between the UK and EU, a single currency will only have a relatively modest impact on increasing exports and its economic growth.
Then, a single currency helps stabilize the exchange rates. At the moment, UK exporters suffer from rapid appreciations in the exchange rate against the Euro.If UK joins the Euro,it will bring about greater stability, which encourages investment. However, many firms have already insure against exchange rate volatility. Therefore, the impact will not become very impressive.
Besides, a single currency might encourage foreign direct investment, which can boost both aggregate demand and aggregate supply.
The adoption of a single currency may also bring some side effects to the economic growth of UK.
The general interest rate set by ECB may not suit UK economy very well. For example, if the UK economy experiences a recession, but the rest of the Euro zone was still growing, interest rates are likely to be too high for UK, which means the economic growth of UK will suffer because higher interest rates would cause lower spending ad investment, worsening the recession.Also,many people have large variable mortgage in UK housing market, higher interest rates may have a big effect on reducing growth rates. On the other hand, if the UK economy is growing and inflation in Europe is low, interest rates may be kept low, which causes the UK economy to expand more quickly. Hence,problems like inflation and a housing boom may occur.
In conclusion,if the UK economy harmonies with the EU economic cycle,then UK economic growth would not be affected very much.