Skip to content
MathsGenie logo
Quick links
Open app

Course home

  1. A Level
  3. Economics Edexcel A
  5. Question bank

2.3 Aggregate supply (AS)

EasyMediumHard
123456789101112131415161718192021222324252627
Question 26

An initial macroeconomic equilibrium diagram with the Average Price Level on the vertical axis and Real National Output (Y) on the horizontal axis. A downward-sloping AD curve intersects a vertical Long-Run Aggregate Supply curve (LRAS1) at an initial price level of PL1 and equilibrium real national output of Y1.

Using the classic long-run aggregate supply (LRAS) and aggregate demand (AD) diagram above, show the effect of a permanent increase in net business investment on the equilibrium level of real national output and the average price level of the economy.

[2]

2.3 Aggregate supply (AS) Questions

  1. A Level
  2. /Economics
  3. /2.3 Aggregate supply (AS)