A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2024 · Q221 Mark

An economy is in equilibrium at point E on the diagram. The government reduces its expenditure on defence. [Figure 22.1] Which point on the diagram shows the new equilibrium?

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✓ Correct answer

A: A

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2024 Paper 1 Variant 2, question 22.

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