A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2025Paper 1 Q251 Mark
The diagram shows aggregate demand (AD) and aggregate supply (AS) curves. The initial equilibrium is at X. A government decides to invest in an increase in infrastructure. What will be the short-term effect of this policy on the equilibrium? [Figure 25.1]
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The correct answer is B. This question tests the candidate's understanding of government macroeconomic intervention 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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