Explains that weaker global demand leads to a contraction in net exports $(X - M)$, which reduces Aggregate Demand ($AD = C + I + G + (X - M)$) and lowers GDP growth for export-dependent nations M1\n- Explains that Indonesia’s high share of domestic consumption ($C$) acts as a buffer, meaning its total Aggregate Demand (and thus real GDP growth) remains more stable and higher than its peers A1","marks":5,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"5d587b2d-2ca1-467a-b820-e2126910a967","revisionId":"907fc42c-3d1a-4dba-a963-a7f6f25ebce9","questionNumber":null,"questionType":"LA","specification":"","difficulty":4,"difficultyBand":"medium","totalMarks":4,"sourceTitle":null,"calculatorUse":null,"parts":[{"id":"c8403aef-e6c4-41a0-8f6d-0648907b9ecc","label":null,"content":"Explain the likely effect of a significant increase in personal income tax rates on a country's net trade balance.","markscheme":"- Explains that an increase in personal income tax rates will reduce households' disposable income B1\n- Explains that lower disposable income leads to a decrease in overall consumer spending (consumption) M1\n- Explains that a proportion of this reduced spending would have been spent on imported goods and services, causing imports ($M$) to decrease M1\n- Concludes that because imports fall (while exports $X$ remain constant in the short term), the net trade balance ($X - M$) will improve, moving towards a surplus or a smaller deficit A1","marks":4,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null},{"id":"60b28b9b-2ee4-4f7c-9170-60b319bbfa33","revisionId":"481eec83-9104-4386-bcba-d6a5a6d908c0","questionNumber":null,"questionType":"LA","specification":"Following a period of economic stagnation, a government announces a massive £50 billion capital investment program dedicated to modernising the national energy grid and transport infrastructure.","difficulty":3,"difficultyBand":"medium","totalMarks":4,"sourceTitle":null,"calculatorUse":null,"parts":[{"id":"dab88397-dc1f-48f9-9af4-2278998dde70","label":null,"content":"Draw an aggregate demand (AD) and short-run aggregate supply (SRAS) diagram to illustrate the likely short-run impact of this increase in government expenditure on the equilibrium price level and real output of the economy.","markscheme":"- Correctly labelled axes (Price Level on the vertical axis, Real Output / $Y$ / GDP on the horizontal axis) and an initial baseline equilibrium showing intersecting $AD_1$ and $SRAS$ curves with original equilibrium price level ($P_1$) and real output ($Y_1$) M1\n- Draws a new Aggregate Demand curve shifted to the right ($AD_2$), representing the increase in government spending ($G$ is a component of $AD$) A1\n- Indicates the new equilibrium intersection of $AD_2$ and the $SRAS$ curve, resulting in a higher price level ($P_2$) and a higher level of real output ($Y_2$) A1\n- Shows clear coordinate lines and directional arrows indicating the rightward shift in $AD$ and the resulting increases in both price level and real output C1","marks":4,"order":0,"markingRubric":null,"explanation":null,"options":[]}],"options":[],"explanation":null,"firstAttemptFullMarks":null}],"subjectCode":"a_level_economics__edexcel_a","summaries":[{"id":"01a214d7-a19c-45e5-8d80-7cf5a8ac62a4","difficultyBand":"hard","calculatorUse":null,"totalMarks":15},{"id":"04853379-3132-4113-b22b-e96dbb577364","difficultyBand":"medium","calculatorUse":null,"totalMarks":4},{"id":"04a0969b-504b-49b0-85ac-f6b94a757b93","difficultyBand":"medium","calculatorUse":null,"totalMarks":4},{"id":"0cfff90e-380f-482c-8bc3-36b1e363fc62","difficultyBand":"medium","calculatorUse":null,"totalMarks":5},{"id":"0d60d827-9d14-4274-b4cf-6d19f9971e6b","difficultyBand":"easy","calculatorUse":null,"totalMarks":1},{"id":"152bdd42-d24b-4b4

2.2 Aggregate demand (AD)

Question 12

2.2 Aggregate demand (AD) Questions

2.2 Aggregate demand (AD)

Question 12

2.2 Aggregate demand (AD) Questions