A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2018 · Q191 Mark

The diagram shows a shift in the aggregate demand curve, from AD1 to AD2. [Diagram] What might have caused this shift?

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Afall in the budget surplus

Bfall in the trade surplus

Crise in imports

Drise in the interest rate

✓ Correct answer

A: fall in the budget surplus

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2018 Paper 1 Variant 2, question 19.

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