Sample 1
Student answer (a) (i) Define the term aggregate demand indicated in bold (Text A, paragraph 4). [2] Aggregate demand is total spending on the economy by household, firms, government and the foreign sectors. It is calculated as: consumption + investment + government expenditure + exports – imports. Mark awarded 2 (ii) Define the term negative externalities indicated in bold (Text B, paragraph 2). [2] Negative...