Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram shows an aggregate demand curve. What can explain why the curve slopes downwards?

  • AWhen exports increase there will be an increase in national income.
  • BWhen government expenditure increases there will be an increase in national output.
  • CWhen investment increases there will be an increase in consumption.
  • DWhen the price level increases there will be an increase in interest rates.

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