Explain how the multiplier and accelerator affect the overall level of economic activity.
Aggregate Demand and the Level of Economic Activity — AQA Past Paper Questions
2 questions on Aggregate Demand and the Level of Economic Activity (AQA specification 2.2.4) from the A-Level Economics papers, 2021–2024. Every question links to the official mark scheme at the page its answer begins on.
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Extract B (line 9) states: ‘The government spending cuts also severely damaged private-sector jobs.’ With the help of a diagram, explain how a reduction in government spending could increase unemployment in the private sector.
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Related topics
- 2.2.1 The Circular Flow of Income 2 questions
- 2.2.3 Determinants of AD 4 questions
- 2.2.5 Determinants of SRAS 2 questions
- 2.2.6 Determinants of LRAS 5 questions
- 2.1.1 Objectives of Government Policy 2 questions
- 2.1.2 Macroeconomic Indicators 4 questions
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