A Level Economics (9708)•9708/13/O/N/19

Explanation
Both changes shift AD rightward Steps:
- Private sector investment rises, increasing a component of AD (I), shifting AD right.
- Government spending on training rises, increasing another AD component (G), shifting AD further right.
- AS remains unchanged, as neither affects production capacity directly.
- New equilibrium occurs at intersection of new AD and original AS: higher output and price level.
Why B is correct:
- B shows rightward AD shift, raising equilibrium output and prices per AD-AS model.
Why the others are wrong:
- A likely shows leftward AD shift, which would lower output and prices.
- C probably depicts AS shift, but no supply-side changes occur.
- D indicates no shift, ignoring the demand increases.
Final answer: B
Topic: Aggregate Demand and Aggregate Supply analysis
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