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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 23

Extract C (lines 12-14) states '...key drivers of recent economic expansion include a major surge in household wealth alongside a substantial increase in government investment in national infrastructure.'

Draw an AD/AS diagram to show the impact of these factors on the price level and real GDP.

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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