Skip to content

Course home

Sign up

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

EasyMediumHard
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273747576777879808182838485868788899091929394959697
Question 96

All other things being equal, which one of the following is most likely to cause a simultaneous outward (rightward) shift in both an economy's short-run and long-run aggregate supply curves?

A

A permanent upgrade to the national energy grid that improves industrial productivity and reduces transmission losses

B

A temporary reduction in the global market price of imported industrial raw materials

C

A cut in the central bank's policy interest rate to stimulate residential housing construction

D

A significant appreciation in the external exchange rate of the domestic currency

Markscheme

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

222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank