Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 19
9708Aggregate Demand and Aggregate Supply analysis
In which situation would an increase in consumption not cause an increase in real GDP?
- Athe current rate of GDP growth is less than the country's target rate
- Bthe economy is experiencing low rates of inflation
- Cthe economy is in recession
- Dthe economy is operating at full capacity
As printed in the paper
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Correct answer: D. the economy is operating at full capacity
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