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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 28

Which one of the following combinations of macroeconomic developments is most likely to cause an outward shift in the aggregate demand (ADADAD) curve of the Australian economy?

CombinationDomestic interest ratesIncome tax ratesReal GDP of major trading partners
ARisingRisingFalling
BFallingRisingFalling
CFallingFallingRising
DRisingFallingRising

Combination A

Combination B

Combination C

Combination 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