Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

In the diagram, AD1 shows an economy’s original aggregate demand curve. What might lead to the curve moving to AD2?

  • ABusinessmen have come to expect a lower rate of return on capital investment.
  • BDomestic consumers have become more thrifty.
  • CExports have become more competitive in overseas markets.
  • DThe economy’s propensity to import has increased.

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