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Question 18N.1.HL.TZ0.a

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Date November 2018 Marks available [Maximum mark: 10] Reference code 18N.1.HL.TZ0.a
Level HL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18N.1.HL.TZ0.a

Using the concept of the multiplier, explain how an increase in investment might affect aggregate demand.

[10]

Markscheme

Answers may include:

  • definitions of investment, aggregate demand, multiplier
  • diagram to show the impact of the multiplier on AD
  • explanations that investment is one of the components of the aggregate demand and of the multiplier effect
  • example(s) of where an increase in investment has affected AD through the multiplier effect.

NB Candidates who do not refer to the concept of the multiplier should not be awarded marks beyond level 2.

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Syllabus sections