AS Paper 2, June 2025The UK Economy – Performance and Policies

AS Paper 2, June 2025, Q6(e)

Discuss the likely macroeconomic effects of a decrease in government expenditure on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer.

Data responseDiscuss15 marks

Case study

UK living standards and supply-side policies

Original diagram required. See the original question paper for the diagram.

Specification topics

Government expenditure (G)Demand-side policiesThe multiplier

Revision notes

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