The diagram illustrates rises in both aggregate demand, from AD1 to AD2, and aggregate supply, from AS1 to AS2. Which diagram shows the output gap after the increase in AD and AS?
- AY1Y2
- BY1Y3
- CY2Y3
- DY3Y4
Economics 9708 · AS & A Level · Economic growth
The diagram illustrates rises in both aggregate demand, from AD1 to AD2, and aggregate supply, from AS1 to AS2. Which diagram shows the output gap after the increase in AD and AS?