29Sustainable DevelopmentHard1 markThe diagram shows a possible outcome for an economy.What is the most likely reason why an economy is unable to turn at point X towards point Y?Aa cut in direct taxes causes a substitution effect and tax revenues continue to riseBa depreciation of the exchange rate increases the rate of economic growthCpollution continues to be caused by rising real GDPDthere is now greater emphasis on living standards rather than economic growthGrade answerSolutionGrading criteria