A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2019 · 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]

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.

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

C: an increase in import prices

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 1 Variant 2, question 20.

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