Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Which statement is both valid and consistent with the features shown in the diagram (AS/AD)?

  • AAS cannot be increased beyond some level of real output.
  • BConsumption is a component of AD and is lower when the general level of prices is lower.
  • CInvestment is a component of AS and is independent of the general level of prices.
  • DThe greater the demand for a country’s exports, the lower will be AD.

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