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

Aggregate demand and aggregate supply — practice question

(a)[12]

Consider, with the aid of a circular flow diagram, why an export-led growth policy is likely to succeed when a developed economy experiences recession.

(b)[13]

Introducing new technology will improve efficiency, but it will also push unemployment higher. Discuss the extent to which you agree with this statement.

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