Note AcademyNote Academy
Start

Economics (AS & A Level) · Oct / Nov 2022 · Paper 13 · Question 21

9708Aggregate Demand and Aggregate Supply analysis

An economy is initially in equilibrium. Which combination of events will definitely cause an increase in the general price level of the economy and a decrease in its real output?

  1. Aaggregate demand decreases; short-run aggregate supply decreases
  2. Baggregate demand decreases; short-run aggregate supply unchanged
  3. Caggregate demand increases; short-run aggregate supply decreases
  4. Daggregate demand unchanged; short-run aggregate supply decreases

As printed in the paper

Show the answer

Correct answer: D. aggregate demand unchanged; short-run aggregate supply decreases

Sit this whole paper →More on Aggregate Demand and Aggregate Supply analysis

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.