Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Which combination of changes is most likely to cause the aggregate price level and the level of real output to rise?

  • Aincome tax rate: fall; net exports: decrease
  • Bincome tax rate: fall; net exports: increase
  • Cincome tax rate: rise; net exports: decrease
  • Dincome tax rate: rise; net exports: increase

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