Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates the aggregate demand (AD) and aggregate supply (AS) curves for an economy. Which of the following situations would not lead to a movement from AD1 to AD2?

  • Aa fall in the general price level as government spending is reduced
  • Ban easing of credit by commercial banks for household purchases of consumer goods
  • Can increase in earnings from exports of high-tech products
  • Dan increase in investment by firms in computer systems

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