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Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 20

9708Aggregate Demand and Aggregate Supply analysis

The aggregate demand (AD) curve in an economy shifts to the left. What is most likely to cause this shift?

  1. Aa decrease in the exchange rate
  2. Ba decrease in the interest rate
  3. Can increase in the budget deficit
  4. Dan increase in the current account deficit

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Correct answer: D. an increase in the current account deficit

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