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Aggregate demand and aggregate supply

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Question 2

In the United Kingdom, household consumption expenditure grew robustly between 2013 and 2016, supported by rising house prices and growing consumer confidence. Over this period, the UK unemployment rate fell from 7.2% to 4.8%.

Evaluate, with the use of an appropriate diagram(s), whether a sustained increase in household consumption expenditure will always lead to a reduction in a country's unemployment rate.

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Aggregate demand and aggregate supply Questions

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