Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The AD / AS diagram shows an economy that starts in macroeconomic equilibrium. Which change will certainly lead to an increase in real output?

  • Aa fall in personal taxation and a fall in government expenditure
  • Ba rise in consumption and a rise in the cost of raw materials
  • Ca rise in export revenues and a fall in import expenditure
  • Da rise in government expenditure and a fall in investment

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI