Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 17
9708Aggregate Demand and Aggregate Supply analysis
What is required to prevent a rising price level due to an increase in aggregate demand?
- AAdditional productive capacity must be created.
- BGovernment investment must remain at a constant level to stabilise supply.
- CGreater reliance must be placed on imported goods to overcome any domestic shortfalls.
- DWage rates must change more frequently to maintain levels of employment and output.
As printed in the paper
Show the answer
Correct answer: A. Additional productive capacity must be created.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.