Edexcel A-Level Economics AS 2.3.2 2d Causes and Effects of Changes in the Savings Ratio Questions

Knowledge 1, Application 3

Quantitative skills assessed:

QS4: Construct and interpret a range of standard graphical forms

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

Knowledge

Correctly drawn diagram with correctly labelled AD/SRAS curves showing the original equilibrium price level and real output (1)

Application

Up to 3 marks for the following information included on the diagram:

- Drawing AD shifted to the right (1)

- Showing correct higher price level (1) (not rewarded if 'price' is used on the axis)

- Showing correct higher real output (1) (not rewarded if 'quantity' is used on the axis)

(4)

Question

Calculate the value of aggregate demand for this economy in 2022.

Mark