DP Economics
Question 18N.3.HL.TZ0.3i
| Date | November 2018 | Marks available | [Maximum mark: 4] | Reference code | 18N.3.HL.TZ0.3i |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | i | Adapted from | N/A |
i.
[Maximum mark: 4]
18N.3.HL.TZ0.3i
Figure 4 represents the circular flow of income in Country A, with values in billions of dollars ($).
Figure 4
The government of Country A decides to increase the level of taxation to $34 billion.
(i)
Using an AD/AS diagram, explain how this may affect the level of unemployment.
[4]
Markscheme
NB A response in which the AS curve shifts to the left, on the basis that the increase in taxation may be indirect taxation, should be rewarded.
