Edexcel A-Level Economics AS 2.3.2 1b Components of Aggregate Demand of Ad C I G X M the Ad Curve Questions

Practise selecting C, I, G, exports and imports from macroeconomic tables, calculating aggregate demand and rearranging the identity for consumption.

Exam points

calculate net exports and aggregate demand from C + I + G + (X-M), excluding savings and tax distractors
rearrange the aggregate-demand identity to calculate a missing component such as consumption

[Maximum number: 4]

The table shows selected macroeconomic data for an economy in 2022.

Table for Question Edexcel A-Level Economics AS 2.3.2 1b Components of Aggregate Demand of Ad C I G X M the Ad Curve Questions question 1 — Edexcel A-Level Economics AS

Ceteris paribus, calculate the value of aggregate demand for this economy in 2022. Show your workings.

Knowledge 1, Application 3

Quantitative skills assessed:

QS9: Interpret, apply and analyse information in written, graphical and tabular forms

Knowledge

1 mark for correct definition or formula for AD:

- C+I+G+(X-M) (1)

Application

Up to 3 marks for correct application:

- $\$ 15.76 b n+\$ 2.30 b n+\$ 6.14 b n(\mathbf{1})+(\$ 8.43 b n-\$ 7.01 b n)$ (1)

- = $25.62 billion (1)

NB If the correct answer is given ( $ 2 5. 6 2 billion/$25.6 billion /$26 billion), award full marks regardless of working

NB If the answer is given as $ 2 5. 6 2 / $ 2 5. 6 / $ 2 6 without the billion sign, award only 3 marks

(4)

Question

With reference to Guinea, explain one likely impact of higher real
incomes on subjective happiness.

Mark

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Edexcel A-Level Economics AS 2.3.2 1b Components of Aggregate Demand of Ad C I G X M the Ad Curve Questions question 1