Year 11 Economics Worksheet 8 - (Economic Growth 2) PECTEMUR AGENDA Student Name 1 . Study the diagram below. (3 marks) General Price AD Level - inflaton GDP and Employment Use to diagram (draw at least one more line) to demonstrate/explain how an increase in Aggregate Demand would benefit living standards in Australia.2. of 4%? Why may 1.5% real economic growth be better for an economy than nominal growth (3 marks) 3. Identify and explain one reasonable government policy that would be likely to increase AS. (3 marks) 4. What does "M" in the AD formula represent? Why is it deducted from AD? (2 marks)