Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

For output in a closed economy to rise, aggregate demand must increase. What has to occur for this rise in output to be brought about in the economy?

  • Aenough capacity to produce the extra goods and services demanded
  • Bfree trade to allow imports to make up any shortages in supply
  • Cgovernment spending to be less than tax revenue
  • Dreduced credit to lower inflation

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