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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 5

Multinational technology firms engage in a major wave of investment in a developing country, constructing advanced data centres and network infrastructure to exploit low energy costs. All other things being equal, the result of this investment for that country's economy would be

A

a movement along both its aggregate demand curve and long-run aggregate supply curve.

B

a movement along its aggregate demand curve and a shift in its long-run aggregate supply curve.

C

a shift in its aggregate demand curve and a movement along its long-run aggregate supply curve.

D

a shift in both its aggregate demand curve and long-run aggregate supply curve.

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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