A-level Paper 2, June 2023The National and Global Economy
A-level Paper 2, June 2023, Q1(a)
Draw an aggregate demand and aggregate supply diagram to illustrate the likely impact of an increase in the UK base interest rate on the average price level and real output.
Short answerDraw4 marks
Context
In September 2022 the Bank of England increased the base interest rate from 1.75% to 2.25%.
Original diagram required. See the original question paper for the diagram.
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