Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The government raises the unemployment benefit rate. Which diagram illustrates the resulting movement in the consumption function from C1 to C2?

  • Adiagram A (C2 above C1, parallel shift up)
  • B[IMAGE:9708_s14_qp_33_p11_diagram_4]
  • C[IMAGE:9708_s14_qp_33_p11_diagram_3]
  • Ddiagram D (C1 and C2 crossing)

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