Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

(a)[8]

Explain how a rise in the rate of interest might bring about a shift in an economy’s aggregate demand curve.

(b)[12]

Discuss whether inflation is more likely to result from a shift in an economy’s aggregate demand or from a shift in its aggregate supply.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding of every part of the aggregate demand curve (AD formula i.e. C + I + G + X – M).” …

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