Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

People within an economy become more optimistic about the future. This leads to a rise in consumer expenditure, causing the aggregate demand curve to shift to the right, as shown. What could make the economy’s output return to Y?

  • Aa decrease in indirect taxes
  • Ba decrease in tariffs on imports
  • Can increase in investment
  • Dan increase in wage rates

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