A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2022 · Q231 Mark
The diagram shows a shift in an economy's aggregate demand curve from AD₁ to AD₂. What could not be a cause of the shift? [Figure 23]
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.
Adecrease in income tax
Bdecrease in the price of goods
Can increase in money wage rates
Dan increase in the money supply
✓ Correct answer
B: decrease in the price of goods
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