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A-LevelEconomicsAggregate Demand and Aggregate SupplyOct/Nov 2019Paper 1 Q201 Mark

The diagram shows the original aggregate demand curve, AD1, and original aggregate supply curve, AS1. The original equilibrium is at X. What would cause the new equilibrium to be at Y? [Figure 20]

Aan increase in export prices
Ban increase in government spending on education
Can increase in import prices
Dan increase in the money supply

✓ Correct Answer

The correct answer is C: an increase in import prices

📋 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 Aggregate Demand and Aggregate Supply in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2019 examination, Paper 1 Variant 2.

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