2.2.3 Investment (I)

Question 5

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]

2.2.3 Investment (I)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Question 5

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]

2.2.3 Investment (I)

Question 5

2.2.3 Investment (I) Questions

2.2.3 Investment (I)

Question 5

2.2.3 Investment (I) Questions