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

Aggregate demand and aggregate supply — practice question

The diagram indicates a movement in the economy’s saving function from S1 to S2. What may be deduced from the diagram?

  • AAutonomous consumption has increased.
  • BEquilibrium national income has increased from OY1 to OY2.
  • CThe marginal propensity to save has increased.
  • DThe multiplier has increased.

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