A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2020 · Q251 Mark

The diagram shows aggregate demand curves AD₁ and AD2 and an aggregate supply curve AS1. What could cause the shift in the aggregate demand curve 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.

Arise in the interest rates

Brise in output per worker

Crise in the budget deficit

Drise in the value of the exchange rate

✓ Correct answer

B: rise in output per worker

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2020 Paper 1 Variant 2, question 25.

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