Economics (AS & A Level) · May / June 2024 · Paper 13 · Question 16
9708Aggregate Demand and Aggregate Supply analysis
The diagram shows the effect on the average price level when aggregate demand (AD) increases from AD1 to AD2. Which statement relating to this change in aggregate demand is correct?
- ANominal GDP has increased.
- BNominal GDP is unchanged.
- CReal GDP has increased.
- DReal GDP has fallen.
As printed in the paper
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Correct answer: A. Nominal GDP has increased.
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