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A-LevelEconomicsAggregate Demand and Aggregate SupplyMay/June 2017Paper 1 Q191 Mark

The diagram shows a shift in the aggregate demand curve of an economy from AD₁ to AD₂. [Figure 19.1] What could have caused this shift?

Aan increase in expenditure on imports
Ban increase in government tax rates
Can increase in the international trade deficit
Dan increase in the money supply

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of aggregate demand and aggregate supply 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) May/June 2017 examination, Paper 1 Variant 2. It tests the topic of Aggregate Demand and Aggregate Supply and is worth 1 mark.

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