Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The diagram illustrates an economy where the initial equilibrium real output is Y1 at a price level of P1. Which combination of events would be most likely to make the equilibrium real output increase to Y2?

  • Aan increased budget deficit and a fall in energy costs
  • Ban increased budget surplus and a rise in energy costs
  • Can increased trade deficit and a fall in indirect tax
  • Dan increased trade surplus and a rise in indirect tax

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