A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2018 · Q201 Mark
In the diagram an economy is initially in equilibrium at point X. The government increases spending on education. This coincides with an increase in wage rate inflation. Which point shows the most likely short-run equilibrium of the economy?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
A[Point A]
B[Point B]
C[Point C]
D[Point D]
✓ Correct answer
C: [Point C]
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