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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 35

Extract C (lines 5–7) states: ‘A sustained depreciation of the exchange rate has made domestic goods more competitive abroad, leading to a rise in net export demand.’

Draw an AD/AS diagram to show the impact of an increase in net exports on both the price level and real national output.

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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