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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 8

The table below shows different sets of changes taking place in an economy.

All other things being equal, which one of the following combinations, A, B, C or D, is most likely to have the effect of shifting the short-run aggregate supply (SRASSRASSRAS) curve for the economy to the left?

Trade-weighted exchange rateGovernment subsidies for business energy use
AAppreciatingFalling
BDepreciatingRising
CAppreciatingRising
DDepreciatingFalling

A

B

C

D

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts