A-LevelEconomicsThe macroeconomy9708/12 · May/June 2017 · Q191 Mark
The diagram shows a shift in the aggregate demand curve of an economy from AD₁ to AD₂. [Figure 19.1] What could have caused this shift?
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 expenditure on imports
Ban increase in government tax rates
Can increase in the international trade deficit
Dan increase in the money supply
✓ Correct answer
D: an increase in the money supply
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