Question 1
Which one of the following would be most likely to cause aggregate demand to increase? A fall in:
Answer: D.
What this practice covers
Real past-paper questions, the answer key from the mark scheme, and the explanation that goes with it. Each one is marked the moment you pick, the correct option is shown whether or not you found it, and the full explanation opens either way. No account needed to answer them.
These questions are drawn from past Edexcel A-Level papers. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Keep going multiple-choice questions →
What examiners see students get wrong here
These are the errors that cost marks on aggregate demand, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Forgetting that imports are subtracted in AD.
- Confusing a movement along AD with a shift.
- Using 1 ÷ MPS where the economy has taxes and imports; it must be 1 ÷ MPW.
- Shifting AD by the initial injection rather than the multiplied amount.
- Ignoring spare capacity, which determines the real effect entirely.
- Treating investment as stable; it is the most volatile component.
- Confusing the multiplier with the accelerator.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Aggregate Demand revision notes.