Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates aggregate demand (AD) and short-run aggregate supply (SRAS) for an economy at a price level OP. Which set of events would certainly lead to an increase in the general price level?

  • Aworld commodity prices decrease, domestic unemployment decrease
  • Bworld commodity prices decrease, domestic unemployment increase
  • Cworld commodity prices increase, domestic unemployment decrease
  • Dworld commodity prices increase, domestic unemployment increase

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