A-LevelEconomicsMacroeconomics: Government Fiscal PolicyOct/Nov 2023Paper 1 Q241 Mark
A government increases the rate of income tax. What is the effect, in the short run, on the aggregate demand curve or the aggregate supply curve?
AThe aggregate demand curve shifts left.
BThe aggregate demand curve shifts right.
CThe aggregate supply curve shifts left.
DThe aggregate supply curve shifts right.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of macroeconomics: government fiscal policy within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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