A-LevelEconomicsThe MacroeconomyMay/June 2025Paper 1 Q181 Mark

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

Q: What topic does this question test?

This question tests The Macroeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: The real value of assets increases as the price level falls.

📋 Examiner Report & Trap Analysis

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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests The Macroeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2025 examination, Paper 1 Variant 2.

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