Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 16

A government has increased output with no effect on the price level. [diagram: price level against output, with AS curve and AD1, AD2, AD3, AD4 curves] What must have been the initial level of aggregate demand (AD)?

1. AAD1
2. BAD2
3. CAD3
4. DAD4

As printed in the paper