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 Edexcel IAL Economics 2.3.2.1b by calculating aggregate demand from consumption, investment, government spending and net exports.

Exam points

calculate aggregate demand as consumption plus investment plus government spending plus net exports

[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

All question bank results loaded

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