A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2019 · Q231 Mark
The diagram shows an aggregate supply curve, and aggregate demand curves. What would cause a decrease in aggregate demand from AD₁ to AD2?
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.
Aan increase in income tax
Ban increase in the price of electricity
Can increase in the tax on goods
Dan increase in wage rates
✓ Correct answer
A: an increase in income tax
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