Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  3. Economics Edexcel A
  5. Question bank

2.6 Macroeconomic objectives and policies

EasyMediumHard
123456789101112
Question 11

In December 2023, the government of a country announced an expansionary fiscal policy, reducing the standard rate of Value Added Tax (VAT) from 20% to 15%.

Draw an aggregate demand and aggregate supply (AD-AS) diagram to illustrate the likely impact of this reduction in the standard rate of VAT on the average price level and real national output.

An AD-AS diagram showing a rightward shift in the Aggregate Demand (AD) curve.

[4]

2.6 Macroeconomic objectives and policies Questions

  1. A Level
  2. /Economics
  3. /2.6 Macroeconomic objectives and policies