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

Aggregate demand and aggregate supply — practice question

The diagram illustrates the AD and AS curves for a low income country. Oil and gas account for 90% of its exports. The initial equilibrium level of national income is $Y_1$. What is the most likely new equilibrium point if the worldwide prices of oil and gas rise dramatically?

  • AA
  • BB
  • CC
  • DD

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