Aggregate demand and aggregate supply

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Question 18
Easy

Which of the following changes is most likely to cause the shift in Aggregate Demand (AD1 AD_1\,AD1​ to AD2AD_2AD2​) shown in the diagram below?

Aggregate Demand Shift

A decrease in house prices reducing household wealth

A reduction in the rate of value-added tax (VAT) on consumer goods

An increase in government capital expenditure on transport infrastructure

A sustained depreciation in the value of the domestic currency

Aggregate demand and aggregate supply Questions

  1. A Level
  2. /Economics
  3. /Aggregate demand and aggregate supply