The diagrams illustrate a country’s aggregate demand (AD1) curve and aggregate supply (AS1) curve. Following the world economic downturn (2007–2008), some governments have lowered labour costs and kept interest rates constant. In what way would this probably be represented on a diagram?
- A[IMAGE:9708_s24_qp_13_p7_diagram_1]
- BAD shift options showing AD1 and AS1 positions — option B
- C[IMAGE:9708_s24_qp_13_p7_diagram_2]
- D[IMAGE:9708_s24_qp_13_p7_diagram_3]