A-LevelEconomicsThe MacroeconomyFeb/Mar 2020Paper 1 Q271 Mark
In a closed economy a rise in aggregate demand is needed to increase output in the country. What is necessary to achieve this increase in output in the economy?
Aenough capacity to produce the extra goods and services demanded
Bfree trade to allow imports to make up any shortages in supply
Cgovernment spending to be less than tax revenue
Dreduced credit to lower inflation
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of the macroeconomy 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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