Economics Multiple Choice Question – 20 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

How would a fall in the price level be shown on an aggregate demand (AD) diagram?

Select ONE answer:

  1. A movement down the AD curve
  2. A movement up the AD curve
  3. A shift to the left of the AD curve
  4. A shift to the right of the AD curve

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

  1. Correct: demonstrates the correct relationship.
  2. Would be caused by a rise in the price level.
  3. Would be caused by a change in components of aggregate demand.
  4. Would be caused by a change in components of aggregate demand.

 

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