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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 21

All other things being equal, which one of the following combinations of macroeconomic changes is most likely to cause a leftward shift in an economy's Aggregate Demand (ADADAD) curve?

A decrease in the marginal propensity to import, a rise in business confidence, and a decrease in corporate tax rates

An increase in the marginal propensity to save, a decrease in business confidence, and an appreciation of the exchange rate

An increase in direct taxation, a depreciation of the exchange rate, and a rise in government capital expenditure

A decrease in interest rates, an increase in household savings, and a fall in the demand for exports

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