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

Aggregate demand and aggregate supply — practice question

The diagram illustrates the aggregate demand and aggregate supply curves for an economy. What would bring about a change in aggregate demand from AD to AD$_1$?

  • Agovernment campaigns to encourage household savings
  • Bconsumption of domestic instead of foreign goods
  • Ca decrease in the budget surplus
  • Dinvestment in knowledge-based enterprises

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