Which of the following would cause a shift to the right of the aggregate demand curve?
Select ONE answer:
- a decrease in investment
- a decrease in the price level
- an increase in exports
- an increase in labour productivity
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 3
- This will cause a shift to the left of the AD curve.
- This will cause a movement along the AD curve.
- Correct: Exports are a component of AD. An increase in exports would shift the AD curve to the right.
- This would cause a shift to the right of the AS curve.
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