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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 22

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

Labour productivityWorld energy prices
ARisingFalling
BFallingRising
CRisingRising
DFallingFalling

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

A

Combination A (Labour productivity: Rising; World energy prices: Falling)

B

Combination B (Labour productivity: Falling; World energy prices: Rising)

C

Combination C (Labour productivity: Rising; World energy prices: Rising)

D

Combination D (Labour productivity: Falling; World energy prices: Falling)

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.

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