Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates aggregate demand (AD) curves for an economy. Which combination is most likely to have led to the movement from AD1 to AD2?

  • Aincome tax decrease; sales tax decrease
  • Bincome tax decrease; sales tax increase
  • Cincome tax increase; sales tax decrease
  • Dincome tax increase; sales tax increase

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI