Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates the aggregate demand and aggregate supply curves for an economy. What might cause aggregate demand to shift from AD to AD1?

  • Aa decrease in the budget surplus
  • Bconsumption of domestic instead of foreign goods
  • Cgovernment campaigns to encourage household savings
  • Dinvestment in knowledge-based enterprises

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