Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates shifts in aggregate demand and aggregate supply that have led from equilibrium point X to equilibrium point Y. Which combination of events might have brought about this change?

  • Ahigher interest rates and the discovery of new natural resources
  • Bincreased consumer confidence and reduced raw material prices
  • Cless business confidence and higher indirect taxes
  • Dlower exchange rate and net outward migration

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