Economics 9708 · AS & A Level · Aggregate demand and aggregate supply

Aggregate demand and aggregate supply — practice question

The diagram illustrates the link between household income and household consumption. What would be likely to make the household consumption curve move from C1 to C2?

  • Aa decrease in household income
  • Ba decrease in the value of household assets
  • Can increase in interest rates
  • Dan increase in the expected future level of household income

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