A-LevelEconomicsComponents of Aggregate DemandOct/Nov 2025Paper 1 Q171 Mark
The diagram shows aggregate demand and aggregate supply curves for an economy. [Figure 17.1] What would cause a change in the aggregate demand from AD to AD₁?
Agovernment campaigns to encourage household savings
Bconsumption of domestic instead of foreign goods
Cdecrease in the budget surplus
Dinvestment in knowledge-based enterprises
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The correct answer is A. This question tests the candidate's understanding of components of aggregate demand within the Economicssyllabus. The examiner's mark scheme requires...
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