Figure 2 shows the aggregate demand (AD) curves and short-run aggregate supply (SRAS) curves for an economy.
Which one of the following combinations of events is most likely to cause aggregate demand to shift from AD$_1$ to AD$_2$ and short-run aggregate supply from SRAS$_1$ to SRAS$_2$?
1 )
A fall in income tax and lower raw material prices
2 )
A fall in net exports and higher labour productivity
A rise in money wages and a rise in household saving
4 )
An increase in VAT and a rise in household wealth
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