A-LevelEconomicsExchange RatesOct/Nov 2018Paper 1 Q211 Mark
Between June and the end of July 2016 the UK pound sterling depreciated by 11% against a basket of currencies of the UK's major trading partners. The diagram shows the original aggregate demand curve AD1 and the original aggregate supply curve AS1 for the UK economy before June 2016. The equilibrium is at X. [Diagram] What will be the new equilibrium for the UK economy as a result of the depreciation of the pound sterling?
APoint A
BPoint B
CPoint C
DPoint D
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of exchange rates 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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