2.2 Aggregate demand (AD)

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Question 21

Annotate the aggregate demand ( $A D$ ) and short-run aggregate supply ( $S R A S$ ) diagram below to show the likely impact of a sharp rise in the central bank's base interest rate, leading to a significant contraction in planned business investment, on the equilibrium level of real national output and the price level.

Aggregate Demand and Short-Run Aggregate Supply Diagram

[2]

2.2 Aggregate demand (AD)

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Question 21

Annotate the aggregate demand ( $A D$ ) and short-run aggregate supply ( $S R A S$ ) diagram below to show the likely impact of a sharp rise in the central bank's base interest rate, leading to a significant contraction in planned business investment, on the equilibrium level of real national output and the price level.

Aggregate Demand and Short-Run Aggregate Supply Diagram

[2]

2.2 Aggregate demand (AD)

Question 21

2.2 Aggregate demand (AD) Questions

2.2 Aggregate demand (AD)

Question 21

2.2 Aggregate demand (AD) Questions