A-LevelEconomicsAggregate Demand and SupplyOct/Nov 2017Paper 1 Q191 Mark
In its recent budget a government reduced total expenditure while increasing the amount spent on training to increase the productivity of the workforce. The initial equilibrium point is shown by X on the aggregate demand (AD) and aggregate supply (AS) diagram. [Figure showing aggregate supply curves AS3, AS1, AS2 and aggregate demand curves AD3, AD1, AD2, with points X, B, C, D, A] What would be the equilibrium point after these changes?
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The correct answer is A. This question tests the candidate's understanding of aggregate demand and supply within the Economicssyllabus. The examiner's mark scheme requires...
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