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A-LevelEconomicsMacroeconomic Aims and PoliciesFeb/Mar 2022Paper 1 Q231 Mark

The diagram shows a shift in an economy's aggregate demand curve from AD₁ to AD₂. What could not be a cause of the shift? [Figure 23]

Adecrease in income tax
Bdecrease in the price of goods
Can increase in money wage rates
Dan increase in the money supply

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The correct answer is B. This question tests the candidate's understanding of macroeconomic aims and policies within the Economicssyllabus. The examiner's mark scheme requires...

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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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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2022 examination, Paper 1 Variant 2. It tests the topic of Macroeconomic Aims and Policies and is worth 1 mark.

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