A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2013 · Q241 Mark
The diagram illustrates what happens to aggregate demand (AD) and aggregate supply (AS) in an economy during a year. [Figure 24.1] What explains the rise in the general price level?
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.
Aboom in consumer spending
Bhigher taxes on company profits
Creduction in government-financed projects
Drising costs of raw materials
✓ Correct answer
A: boom in consumer spending
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