Chapter 1: A-Level Economics Revision: Markets, Macroeconomics and Exam Technique

A-level EconomicsAQA / OCR / Pearson Edexcel / WJEC Eduqas12 topicsIntermediate

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Edexcel A-level Economics Aggregate Demand - Authored Long Answer Questions

Examiner-style long-answer practice with automatic marking, improvement advice and ProofCoach tracking.

4 questions47 marks70.5 min

standard / hard / synoptic

4 markscalculatestandardEdexcel

E22: Evidence for Aggregate Demand

Evidence measure with unit	2020 value	2024 value	Context or unit
UK household consumption as a percentage of GDP	100.0	108.5	index or percentage as stated
UK household consumption and investment after a change in interest rates	baseline	changed	UK or global context
a rise in consumption, government spending or net exports shifting aggregate demand	lower impact	higher impact	directional evidence

E22A Calculate or define the key economic measure in Aggregate Demand, using the data evidence provided for UK household consumption and investment after a change in interest rates.

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9 marksanalysehardEdexcel

Aggregate Demand shift: UK interest rate cut, 2021

A cut in interest rates increases consumption and investment, shifting AD from AD1 to AD2. Real GDP rises from Y1 to Y2 and the price level rises from P1 to P2 in the short run.

E22B Using Figure 1 and your knowledge, analyse the economic effects shown by the diagram below in relation to UK household consumption and investment after a change in interest rates. In your answer, identify the model, curve labels, any shift shown and the likely impact.

Label the horizontal axis and vertical axis precisely with units.
Label the relevant curves and show the direction of shift.
Label the new equilibrium point and explain the change.

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9 marksexplainstandardEdexcel

E22: Evidence for Aggregate Demand

Evidence measure with unit	2020 value	2024 value	Context or unit
UK household consumption as a percentage of GDP	100.0	108.5	index or percentage as stated
UK household consumption and investment after a change in interest rates	baseline	changed	UK or global context
a rise in consumption, government spending or net exports shifting aggregate demand	lower impact	higher impact	directional evidence

E22C Explain how a rise in consumption, government spending or net exports shifting aggregate demand could affect economic agents in the UK economy or global economy.

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25 marksevaluatesynopticEdexcel

E22: Evidence for Aggregate Demand

Evidence measure with unit	2020 value	2024 value	Context or unit
UK household consumption as a percentage of GDP	100.0	108.5	index or percentage as stated
UK household consumption and investment after a change in interest rates	baseline	changed	UK or global context
a rise in consumption, government spending or net exports shifting aggregate demand	lower impact	higher impact	directional evidence

E22D Evaluate the extent to which a rise in consumption, government spending or net exports shifting aggregate demand is likely to improve economic performance, using UK household consumption as a percentage of GDP and your wider economic knowledge.

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Start of AQA / OCR / Pearson Edexcel / WJEC Eduqas

2. Economic Foundations: Scarcity, Choice, Data and the Economist Toolkit

Key learning objectives

Understand the key principles behind A-Level Economics Revision: Markets, Macroeconomics and Exam Technique.
Apply these ideas to exam-style questions.
Recall the essential definitions and key terms.