A-LevelEconomicsThe macroeconomy9708/21 · Oct/Nov 2019 · Q420 Marks

Explain, with the help of a diagram, the difference between what causes (i) a movement along an aggregate supply curve and (ii) a shift in an aggregate supply curve.

(a)Explain, with the help of a diagram, the difference between what causes (i) a movement along an aggregate supply curve and (ii) a shift in an aggregate supply curve.[8]
(b)Discuss whether supply-side policies are likely to be effective in increasing employment in an economy.[12]

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.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

[1] axes correctly labelled: price level, GDP/real output
[1] AS/AD correctly labelled
[3] explanation of a movement along an AS curve
[3] explanation of a shift in an AS curve
[4] analysis of potential benefits of supply-side policies to increase employment in an economy, using appropriate examples
[4] analysis of potential limitations of supply-side policies to increase employment in an economy, using appropriate examples
[3] assessing whether supply-side policies are likely to be effective in increasing employment in an economy – it is possible that such policies might actually increase unemployment
[1] a concluding comment

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