The diagram shows the original aggregate demand $A{D_1}$ and aggregate supply $LRA{S_1}$ for an economy.
What could explain the shifts in aggregate demand to $A{D_2}$ and aggregate supply to $LRA{S_2}$?
an increase in government expenditure on health and education
2 )
an increase in government expenditure on pensions
3 )
an increase in income tax
4 )
an increase in interest rates
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