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A-LevelEconomicsThe MacroeconomyMay/June 2025Paper 1 Q181 Mark

The aggregate demand curve is typically downward sloping. What is one possible explanation for this?

Afall in the price level will lead to a rise in demand for imports.
BAs the price level falls, improved productivity will reduce unit costs.
CIf the price level is high, any interest rate changes will encourage consumption.
DThe real value of assets increases as the price level falls.

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of the macroeconomy 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) May/June 2025 examination, Paper 1 Variant 2. It tests the topic of The Macroeconomy and is worth 1 mark.

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