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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 19

All other things being equal, which combination of economic changes is most likely to cause a rightward shift in a country's Aggregate Demand (ADADAD) curve?

Business ConfidenceInterest RatesExchange RateARisesRiseAppreciatesBFallsFallDepreciatesCRisesFallDepreciatesDFallsRiseAppreciates \begin{array}{|c|c|c|c|} \hline & \text{Business Confidence} & \text{Interest Rates} & \text{Exchange Rate} \\ \hline \textbf{A} & \text{Rises} & \text{Rise} & \text{Appreciates} \\ \hline \textbf{B} & \text{Falls} & \text{Fall} & \text{Depreciates} \\ \hline \textbf{C} & \text{Rises} & \text{Fall} & \text{Depreciates} \\ \hline \textbf{D} & \text{Falls} & \text{Rise} & \text{Appreciates} \\ \hline \end{array} ABCD​Business ConfidenceRisesFallsRisesFalls​Interest RatesRiseFallFallRise​Exchange RateAppreciatesDepreciatesDepreciatesAppreciates​​

Row A\text{Row A}Row A

Row B\text{Row B}Row B

Row C\text{Row C}Row C

Row D\text{Row D}Row D

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