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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 29

Which of the following combinations of economic changes is most likely to cause an unambiguous shift to the left in an economy's Aggregate Demand (ADADAD) curve?

A decrease in the policy interest rate, a rise in the household savings ratio, and an appreciation of the domestic currency

An increase in average residential property prices, a reduction in the corporation tax rate, and a shift in the government budget from a deficit to a surplus

A rise in the policy interest rate, a shift in the government budget from a deficit to a surplus, and a fall in average residential property prices

An appreciation of the domestic currency, a reduction in the marginal propensity to save, and an increase in government capital expenditure

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