A-LevelEconomicsAggregate DemandFeb/Mar 2024Paper 1 Q221 Mark
The diagram shows aggregate demand (AD) curves for an economy. [Figure 22.1] Which combination is most likely to have caused the shift from AD₁ to AD₂?
Aincome tax decrease, sales tax decrease
Bincome tax decrease, sales tax increase
Cincome tax increase, sales tax decrease
Dincome tax increase, sales tax increase
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of aggregate demand 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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