A-LevelEconomicsThe macroeconomy9708/12 · May/June 2014 · Q241 Mark
The diagram shows an economy's aggregate demand curve and two short-run aggregate supply curves. [Figure: Aggregate Demand and Supply graph showing price level vs. real output, with AD curve and two SRAS curves (SRAS₁, SRAS₂), and real output levels Y₁, Y₂.]
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 bank lending
Bdecrease in world oil prices
Can increase in indirect taxation
Dan increase in wage rates
✓ Correct answer
B: decrease in world oil prices
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