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A-LevelEconomicsThe MacroeconomyMay/June 2019Paper 1 Q201 Mark

How can a change in consumption that increases unemployment be illustrated on an aggregate demand and aggregate supply diagram?

Aeffect on the aggregate demand curve: movement down the demand curve, effect on the aggregate supply curve: shift outwards
Beffect on the aggregate demand curve: movement up the demand curve, effect on the aggregate supply curve: shift inwards
Ceffect on the aggregate demand curve: shift inwards, effect on the aggregate supply curve: movement down the supply curve
Deffect on the aggregate demand curve: shift inwards, effect on the aggregate supply curve: movement up the supply curve

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The correct answer is C. This question tests the candidate's understanding of the macroeconomy within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) May/June 2019 examination, Paper 1 Variant 2. It tests the topic of The Macroeconomy and is worth 1 mark.

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