AS Paper 2, June 2025The UK Economy – Performance and Policies
AS Paper 2, June 2025, Q4(b)
Annotate the aggregate demand (AD) and short-run aggregate supply (SRAS) diagram below to show the likely impact of a reduction in indirect tax on the equilibrium level of real output and the price level.
Short answerAnnotate2 marks
Context
In 2023 the UK government reduced indirect tax on certain goods and services.
Original diagram required. See the original question paper for the diagram.