Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for a country, with X marking the initial equilibrium point. During one year, more than one million foreign workers departed from the country, and at the same time the country’s currency appreciated against the currencies of its major trading partners. Which new equilibrium position is most likely for this country?

  • Aposition A
  • Bposition B
  • Cposition C
  • Dposition D

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