A-LevelEconomicsThe macroeconomy9708/12 · Oct/Nov 2025 · Q171 Mark
The diagram shows aggregate demand and aggregate supply curves for an economy. [Figure 17.1] What would cause a change in the aggregate demand from AD to AD₁?
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.
Agovernment campaigns to encourage household savings
Bconsumption of domestic instead of foreign goods
Cdecrease in the budget surplus
Dinvestment in knowledge-based enterprises
✓ Correct answer
A: government campaigns to encourage household savings
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The macroeconomy and see which topics are most likely to come up next.
Sign up free →