Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 20
9708Aggregate Demand and Aggregate Supply analysis
The diagram shows the aggregate demand (AD) and aggregate supply (AS) curves for a country. The initial level of national income is given by Y1. What is the most likely new equilibrium point if there is increased productivity in the manufacture of goods produced for the domestic market?
- AA
- BB
- CC
- DD
As printed in the paper
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Correct answer: C. C
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