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Economics (AS & A Level) · Oct / Nov 2021 · Paper 13 · Question 23

9708Aggregate Demand and Aggregate Supply analysis

The diagram shows aggregate demand (AD) and aggregate supply (AS) for an economy. What is most likely to cause the shift from AS1 to AS2?

  1. Aa decrease in the exchange rate
  2. Ba decrease in the price level
  3. Ca fall in immigration
  4. Da fall in the average level of wages

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Correct answer: D. a fall in the average level of wages

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