Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 24
9708Aggregate Demand and Aggregate Supply analysis
The diagram shows the aggregate demand (AD) and aggregate supply (AS) curves for a country. What is the impact on the price level and unemployment of a small decrease in government expenditure?
- Adecrease; decrease
- Bdecrease; unchanged
- Cincrease; unchanged
- Dunchanged; increase
As printed in the paper
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Correct answer: B. decrease; unchanged
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