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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 65

Context 2: Japan's Trade Dilemma

Extract B The continuous depreciation of the Japanese Yen (JPY) has had a dual effect on the domestic economy. On one hand, domestic exporters have experienced surged demand as Japanese goods become cheaper for foreign buyers. On the other hand, Japan relies heavily on imported energy and raw materials, driving up domestic production costs.

With reference to Extract B, draw an AD/AS diagram to illustrate the likely impact of a weaker Japanese Yen (JPY) on the economic price level and real national output.

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Markscheme

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.

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