Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Why could aggregate demand rise when a country’s price level decreases?

  • ADomestic interest rates will tend to fall.
  • BImports become more price competitive.
  • CReal incomes fall.
  • DThe purchasing power of savings falls.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI