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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 13

All other things being equal, if an open economy simultaneously experiences a severe economic recession among its primary trading partners and a widespread domestic adoption of automation technology that significantly reduces unit labour costs, this is most likely to cause

its aggregate demand (ADADAD) curve to shift to the right and its short-run aggregate supply (SRASSRASSRAS) curve to shift to the left.

its aggregate demand (ADADAD) curve to shift to the left and its short-run aggregate supply (SRASSRASSRAS) curve to shift to the right.

both its aggregate demand (ADADAD) curve and its short-run aggregate supply (SRASSRASSRAS) curve to shift to the left.

both its aggregate demand (ADADAD) curve and its short-run aggregate supply (SRASSRASSRAS) curve to shift to the right.

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