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# Assess whether an increase in the money supply is always damaging for an economy
- URL: https://www.a-level-economics-tutor.com/assess-whether-an-increase-in-the-money-supply-is-always-damaging-for-an-economy/
- Published: 2026-05-15T13:21:39.000Z
- Updated: 2026-05-15T13:21:39.000Z
- Author: Jaisul Naik
- Tags: AQA 25 mark question

### AQA A-Level Economics Paper 1 June 2024

Assess whether an increase in the money supply is always damaging for an economy. (June 2024)

**Plan**

- **Paragraph 1**
  - **Argument: an increase in the money supply can be damaging as it can cause demand-pull inflationary pressure**
  - **Diagram: increase in AD**
  - **Evaluation: depends on the state of the economy**
- **Paragraph 2**
  - **Argument: an increase in the money supply might be necessary to stimulate economic growth and investment**
  - **Diagram: increase in AD, increase in LRAS**
  - **Evaluation: liquidity trap**

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