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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 10

Extract B (lines 14–15) states: 'Subsidies for clean energy infrastructure should help to enhance productive capacity.'

Draw an AD/AS diagram to show the long-run impact of enhanced productive capacity on the price level and national income.

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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts