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A-LevelEconomicsAggregate Demand and Aggregate SupplyFeb/Mar 2018Paper 1 Q191 Mark

An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to

Adecline in the country's international competitiveness.
Ban increase in interest rates.
Can increase in the real value of money balances.
Dthe expectation of further price falls.

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The correct answer is C. This question tests the candidate's understanding of aggregate demand and aggregate supply within the Economicssyllabus. The examiner's mark scheme requires...

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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2018 examination, Paper 1 Variant 2. It tests the topic of Aggregate Demand and Aggregate Supply and is worth 1 mark.

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