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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 18

All other things being equal, which combination of economic changes is most likely to cause a rightward shift in a country's Aggregate Demand (ADADAD) curve?

Business ConfidenceInterest RatesExchange RateARisesRiseAppreciatesBFallsFallDepreciatesCRisesFallDepreciatesDFallsRiseAppreciates \begin{array}{|c|c|c|c|} \hline & \text{Business Confidence} & \text{Interest Rates} & \text{Exchange Rate} \\ \hline \textbf{A} & \text{Rises} & \text{Rise} & \text{Appreciates} \\ \hline \textbf{B} & \text{Falls} & \text{Fall} & \text{Depreciates} \\ \hline \textbf{C} & \text{Rises} & \text{Fall} & \text{Depreciates} \\ \hline \textbf{D} & \text{Falls} & \text{Rise} & \text{Appreciates} \\ \hline \end{array} ABCD​Business ConfidenceRisesFallsRisesFalls​Interest RatesRiseFallFallRise​Exchange RateAppreciatesDepreciatesDepreciatesAppreciates​​
A

Row A\text{Row A}Row A

B

Row B\text{Row B}Row B

C

Row C\text{Row C}Row C

D

Row D\text{Row D}Row D

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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