A-LevelEconomicsThe MacroeconomyMay/June 2018Paper 1 Q191 Mark
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?
Aan increase in consumer expenditure and an increase in productivity
Ban increase in consumer expenditure and a reduction in imports
Can increase in education and training and an increase in income tax
Dan increase in the exchange rate and a reduction in corporation tax
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of the macroeconomy 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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