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Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 25

9708Economic growth and sustainability

The diagram shows an increase in both aggregate demand from AD1 to AD2 and aggregate supply from AS1 to AS2. What shows the output gap after the increase in AD and AS?

  1. AY1Y2
  2. BY1Y3
  3. CY2Y3
  4. DY3Y4

As printed in the paper

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Correct answer: D. Y3Y4

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