The diagrams illustrate a country’s aggregate demand (AD1) and aggregate supply (AS1) curves. Following the world economic downturn (2007–2008), some governments cut labour costs and kept interest rates unchanged. How is this most likely to be represented on a diagram?
- A[IMAGE:9708_w19_qp_11_p10_diagram_1]
- B[IMAGE:9708_w19_qp_11_p10_diagram_4]
- C[IMAGE:9708_w19_qp_11_p10_diagram_2]
- DAS2 to the left of AS1 with AD1 unchanged