Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates aggregate supply curves and aggregate demand curves for an economy. What is most likely to make the equilibrium position shift from X to Y?

  • Aa decrease in corporation tax and a decrease in labour productivity
  • Ba decrease in interest rates and a decrease in electricity prices
  • Can increase in interest rates and an increase in raw material costs
  • Dan increase in marginal tax rates and a decrease in labour productivity

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