The diagram shows short-run aggregate supply and demand in an economy, where the initial equilibrium is at S. [Figure showing multiple aggregate demand (AD1, AD2, AD3) and short-run aggregate supply (SRAS1, SRAS2, SRAS3) curves, with initial equilibrium S (AD1 and SRAS1) and new equilibrium T (AD2 and SRAS2).] What is most likely to cause a movement from S to T?
✓ Correct Answer
The correct answer is B: an increase in consumer expenditure and a reduction in imports
📋 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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