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?

Q: What topic does this question test?

This question tests The Macroeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: enough capacity to produce the extra goods and services demanded

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests The Macroeconomy in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2020 examination, Paper 1 Variant 2.

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