Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates aggregate demand (AD) and aggregate supply (AS) in an economy. Which alterations in subsidies and indirect taxes could have caused the shift in AS shown?

  • Ahigher subsidies and higher indirect taxes
  • Bhigher subsidies and lower indirect taxes
  • Clower subsidies and higher indirect taxes
  • Dlower subsidies and lower indirect taxes

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