33:I[196793,["/_next/static/chunks/2y42ucytxolbw.js?dpl=nogit-1791786264","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791786264","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791786264","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791786264","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791786264","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791786264","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791786264","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791786264","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791786264","/_next/static/chunks/3yfg2hrj9oxbd.js?dpl=nogit-1791786264","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791786264","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791786264","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791786264","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791786264","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791786264","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791786264","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791786264","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791786264","/_next/static/chunks/36r9y5g_s4k64.js?dpl=nogit-1791786264","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791786264","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791786264","/_next/static/chunks/1g1suj21ijg7y.js?dpl=nogit-1791786264","/_next/static/chunks/3122yxib73nqj.js?dpl=nogit-1791786264","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791786264","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791786264","/_next/static/chunks/0oqf4rh3z9c50.js?dpl=nogit-1791786264","/_next/static/chunks/2eanemqjnv2vr.js?dpl=nogit-1791786264","/_next/static/chunks/2f3ohq_f1uov2.js?dpl=nogit-1791786264","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791786264","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791786264","/_next/static/chunks/3puwe987cwmkb.js?dpl=nogit-1791786264","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791786264","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791786264","/_next/static/chunks/3hk191jki_10r.js?dpl=nogit-1791786264","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791786264","/_next/static/chunks/3hiwi517nl330.js?dpl=nogit-1791786264","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791786264","/_next/static/chunks/2gqripb6ybmw9.js?dpl=nogit-1791786264","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791786264","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791786264","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791786264","/_next/static/chunks/1of_-ow2iz1cj.js?dpl=nogit-1791786264","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791786264","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791786264","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791786264","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791786264","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791786264","/_next/static/chunks/06b61oz__qen3.js?dpl=nogit-1791786264","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791786264","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791786264","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791786264","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791786264","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791786264","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791786264","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791786264","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791786264","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791786264","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791786264","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791786264","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791786264","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791786264"],"Gingerbread"] 35:I[647935,["/_next/static/chunks/2y42ucytxolbw.js?dpl=nogit-1791786264","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791786264","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791786264","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791786264","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791786264","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791786264","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791786264","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791786264","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791786264","/_next/static/chunks/3yfg2hrj9oxbd.js?dpl=nogit-1791786264","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791786264","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791786264","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791786264","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791786264","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791786264","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791786264","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791786264","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791786264","/_next/static/chunks/36r9y5g_s4k64.js?dpl=nogit-1791786264","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791786264","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791786264","/_next/static/chunks/1g1suj21ijg7y.js?dpl=nogit-1791786264","/_next/static/chunks/3122yxib73nqj.js?dpl=nogit-1791786264","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791786264","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791786264","/_next/static/chunks/0oqf4rh3z9c50.js?dpl=nogit-1791786264","/_next/static/chunks/2eanemqjnv2vr.js?dpl=nogit-1791786264","/_next/static/chunks/2f3ohq_f1uov2.js?dpl=nogit-1791786264","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791786264","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791786264","/_next/static/chunks/3puwe987cwmkb.js?dpl=nogit-1791786264","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791786264","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791786264","/_next/static/chunks/3hk191jki_10r.js?dpl=nogit-1791786264","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791786264","/_next/static/chunks/3hiwi517nl330.js?dpl=nogit-1791786264","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791786264","/_next/static/chunks/2gqripb6ybmw9.js?dpl=nogit-1791786264","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791786264","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791786264","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791786264","/_next/static/chunks/1of_-ow2iz1cj.js?dpl=nogit-1791786264","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791786264","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791786264","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791786264","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791786264","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791786264","/_next/static/chunks/06b61oz__qen3.js?dpl=nogit-1791786264","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791786264","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791786264","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791786264","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791786264","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791786264","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791786264","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791786264","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791786264","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791786264","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791786264","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791786264","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791786264","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791786264"],"RecordResourceResume"] 36:I[830476,["/_next/static/chunks/2y42ucytxolbw.js?dpl=nogit-1791786264","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791786264","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791786264","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791786264","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791786264","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791786264","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791786264","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791786264","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791786264","/_next/static/chunks/3yfg2hrj9oxbd.js?dpl=nogit-1791786264","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791786264","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791786264","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791786264","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791786264","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791786264","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791786264","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791786264","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791786264","/_next/static/chunks/36r9y5g_s4k64.js?dpl=nogit-1791786264","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791786264","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791786264","/_next/static/chunks/1g1suj21ijg7y.js?dpl=nogit-1791786264","/_next/static/chunks/3122yxib73nqj.js?dpl=nogit-1791786264","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791786264","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791786264","/_next/static/chunks/0oqf4rh3z9c50.js?dpl=nogit-1791786264","/_next/static/chunks/2eanemqjnv2vr.js?dpl=nogit-1791786264","/_next/static/chunks/2f3ohq_f1uov2.js?dpl=nogit-1791786264","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791786264","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791786264","/_next/static/chunks/3puwe987cwmkb.js?dpl=nogit-1791786264","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791786264","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791786264","/_next/static/chunks/3hk191jki_10r.js?dpl=nogit-1791786264","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791786264","/_next/static/chunks/3hiwi517nl330.js?dpl=nogit-1791786264","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791786264","/_next/static/chunks/2gqripb6ybmw9.js?dpl=nogit-1791786264","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791786264","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791786264","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791786264","/_next/static/chunks/1of_-ow2iz1cj.js?dpl=nogit-1791786264","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791786264","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791786264","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791786264","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791786264","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791786264","/_next/static/chunks/06b61oz__qen3.js?dpl=nogit-1791786264","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791786264","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791786264","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791786264","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791786264","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791786264","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791786264","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791786264","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791786264","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791786264","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791786264","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791786264","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791786264","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791786264"],"FlashcardAccessBranch"] 37:I[315438,["/_next/static/chunks/2y42ucytxolbw.js?dpl=nogit-1791786264","/_next/static/chunks/2_6olli-sutu3.js?dpl=nogit-1791786264","/_next/static/chunks/1qp4g--o6-1vf.js?dpl=nogit-1791786264","/_next/static/chunks/0psy-n5us57a4.js?dpl=nogit-1791786264","/_next/static/chunks/3mz725-y91ph6.js?dpl=nogit-1791786264","/_next/static/chunks/2x_dbpl3b_l2r.js?dpl=nogit-1791786264","/_next/static/chunks/0nojijad0occ8.js?dpl=nogit-1791786264","/_next/static/chunks/19ua1o9n5v3ho.js?dpl=nogit-1791786264","/_next/static/chunks/0zkcxwtbsqliz.js?dpl=nogit-1791786264","/_next/static/chunks/3yfg2hrj9oxbd.js?dpl=nogit-1791786264","/_next/static/chunks/35s1d7gs3nyqk.js?dpl=nogit-1791786264","/_next/static/chunks/38w1x0vrld4-w.js?dpl=nogit-1791786264","/_next/static/chunks/3jpl-42mbad5n.js?dpl=nogit-1791786264","/_next/static/chunks/3kzt2piec6aoa.js?dpl=nogit-1791786264","/_next/static/chunks/2lsi6eli88uwt.js?dpl=nogit-1791786264","/_next/static/chunks/2os7nxouq91eq.js?dpl=nogit-1791786264","/_next/static/chunks/3ml3vooxhiupb.js?dpl=nogit-1791786264","/_next/static/chunks/04zr-wqafvwoa.js?dpl=nogit-1791786264","/_next/static/chunks/36r9y5g_s4k64.js?dpl=nogit-1791786264","/_next/static/chunks/40lyu17d590zu.js?dpl=nogit-1791786264","/_next/static/chunks/2g-t2n9ahs3tn.js?dpl=nogit-1791786264","/_next/static/chunks/1g1suj21ijg7y.js?dpl=nogit-1791786264","/_next/static/chunks/3122yxib73nqj.js?dpl=nogit-1791786264","/_next/static/chunks/2mv9l1xl_aa4j.js?dpl=nogit-1791786264","/_next/static/chunks/0v4byuex1x38h.js?dpl=nogit-1791786264","/_next/static/chunks/0oqf4rh3z9c50.js?dpl=nogit-1791786264","/_next/static/chunks/2eanemqjnv2vr.js?dpl=nogit-1791786264","/_next/static/chunks/2f3ohq_f1uov2.js?dpl=nogit-1791786264","/_next/static/chunks/0llqhg6-bxn_b.js?dpl=nogit-1791786264","/_next/static/chunks/2dx-vzwyw9a3g.js?dpl=nogit-1791786264","/_next/static/chunks/3puwe987cwmkb.js?dpl=nogit-1791786264","/_next/static/chunks/1ku-vdy4ggo41.js?dpl=nogit-1791786264","/_next/static/chunks/1coblm1-go81_.js?dpl=nogit-1791786264","/_next/static/chunks/3hk191jki_10r.js?dpl=nogit-1791786264","/_next/static/chunks/0k-y_4mcfub-p.js?dpl=nogit-1791786264","/_next/static/chunks/3hiwi517nl330.js?dpl=nogit-1791786264","/_next/static/chunks/3it1o0ex-l5qz.js?dpl=nogit-1791786264","/_next/static/chunks/2gqripb6ybmw9.js?dpl=nogit-1791786264","/_next/static/chunks/2l63yczi1z2qz.js?dpl=nogit-1791786264","/_next/static/chunks/075i0tnxt4not.js?dpl=nogit-1791786264","/_next/static/chunks/1eyu-5752jh17.js?dpl=nogit-1791786264","/_next/static/chunks/1of_-ow2iz1cj.js?dpl=nogit-1791786264","/_next/static/chunks/3ybwgs28on6c8.js?dpl=nogit-1791786264","/_next/static/chunks/13gj59kzq50t_.js?dpl=nogit-1791786264","/_next/static/chunks/1986062z5zb0v.js?dpl=nogit-1791786264","/_next/static/chunks/0uitbylhcd4am.js?dpl=nogit-1791786264","/_next/static/chunks/0wv8cpdr6cvhr.js?dpl=nogit-1791786264","/_next/static/chunks/06b61oz__qen3.js?dpl=nogit-1791786264","/_next/static/chunks/0a4x2f2g83l7b.js?dpl=nogit-1791786264","/_next/static/chunks/1lsxkfxy262n-.js?dpl=nogit-1791786264","/_next/static/chunks/3q5gc8lbwr4b4.js?dpl=nogit-1791786264","/_next/static/chunks/0dspbdeiizrn3.js?dpl=nogit-1791786264","/_next/static/chunks/2yss1g0cimuwe.js?dpl=nogit-1791786264","/_next/static/chunks/0e7v08pdxbxe2.js?dpl=nogit-1791786264","/_next/static/chunks/36nndwkz7iik3.js?dpl=nogit-1791786264","/_next/static/chunks/0zg1om_k0m5zv.js?dpl=nogit-1791786264","/_next/static/chunks/2fnth9-t6i7kd.js?dpl=nogit-1791786264","/_next/static/chunks/24srd-xd1m5z8.js?dpl=nogit-1791786264","/_next/static/chunks/0a57o9qvnv-nb.js?dpl=nogit-1791786264","/_next/static/chunks/41hx021qkamew.js?dpl=nogit-1791786264","/_next/static/chunks/1ksyn9m68446d.js?dpl=nogit-1791786264"],"TopicFlashcardRunner"] 24:[["$","$L33",null,{"feature":"flashcards"}],"$L34",["$","$L35",null,{"href":"/a-level/economics/ocr/the-interaction-of-aggregate-demand-and-supply/flashcards","label":"The interaction of aggregate demand and supply","subjectCode":"a_level_economics__ocr","surface":"flashcards"}],["$","$L36",null,{"runner":["$","div",null,{"className":"min-h-0 flex-1 overflow-hidden bg-background","children":["$","$L37",null,{"decks":[{"id":"63d26daf-34a0-46ab-8430-4332c14bcc54","title":"The interaction of aggregate demand and supply Flashcards","topicId":"1f4dcd5e-9e0a-59f1-b135-12181bba3e2a","topicSlug":"the-interaction-of-aggregate-demand-and-supply","cards":[{"id":"cc595559-d5be-462b-81c7-4b9dacadeb65","cardType":"basic","points":1,"front":"Real GDP adjusts national output for what?","back":"Inflation.","mcqOptions":[{"text":"Inflation.","correct":true,"explanation":"Real GDP adjusts nominal national output for changes in the price level, allowing output across different years to be compared in constant prices."},{"text":"Population growth.","correct":false,"explanation":"Confusing total GDP with GDP per capita introduces population growth. Real GDP instead adjusts nominal national output for inflation, removing the effect of price changes."},{"text":"Exchange rates.","correct":false,"explanation":"Exchange rates can affect trade and aggregate demand, but they are not the adjustment used to calculate real GDP. Real GDP adjusts for inflation."},{"text":"Income distribution.","correct":false,"explanation":"GDP does not show how income is distributed between households. Real GDP specifically adjusts nominal national output for inflation to measure changes in actual output."}]},{"id":"fcc9d143-76a4-4d21-af7d-6dadf896d35d","cardType":"cloze","points":null,"front":"In an AD/AS diagram, the vertical axis shows the [ ], not inflation; the horizontal axis shows [ ].","back":"In an AD/AS diagram, the vertical axis shows the price level, not inflation; the horizontal axis shows real GDP.","mcqOptions":[{"text":"In an AD/AS diagram, the vertical axis shows the price level, not inflation; the horizontal axis shows real GDP.","correct":true,"explanation":"The vertical axis measures the economy-wide price level, while the horizontal axis measures real GDP, representing the total volume of national output."},{"text":"In an AD/AS diagram, the vertical axis shows the interest rate, not inflation; the horizontal axis shows real GDP.","correct":false,"explanation":"This confuses an AD/AS diagram with a monetary or investment diagram. The vertical axis shows the price level, while the horizontal axis shows real GDP."},{"text":"In an AD/AS diagram, the vertical axis shows the price level, not inflation; the horizontal axis shows nominal GDP.","correct":false,"explanation":"The output axis is not measured at current prices, because that would mix output and price changes. It shows real GDP; the vertical axis shows the price level."},{"text":"In an AD/AS diagram, the vertical axis shows the inflation rate, not inflation; the horizontal axis shows unemployment.","correct":false,"explanation":"This mixes AD/AS with inflation-unemployment analysis. A standard AD/AS diagram plots the price level vertically and real GDP horizontally."}]},{"id":"9ee37c43-6e50-44c1-a75c-4b16ff9cc007","cardType":"basic","points":1,"front":"What is the aggregate demand identity?","back":"$AD = C + I + G + (X - M)$","mcqOptions":[{"text":"$AD = C + I + G + (X - M)$","correct":true,"explanation":"Aggregate demand is the sum of consumption, investment, government spending and net exports. Net exports equal exports minus imports, giving $AD = C + I + G + (X - M)$."},{"text":"$AD = C + I + G + (M - X)$","correct":false,"explanation":"This reverses the net exports calculation. Exports add demand for domestic output and imports subtract from it, so the identity is $AD = C + I + G + (X - M)$."},{"text":"$AD = C + S + T + (X - M)$","correct":false,"explanation":"This substitutes saving and taxation, which are withdrawals, for investment and government spending. Aggregate demand is $AD = C + I + G + (X - M)$."},{"text":"$AD = C + I + G + (X + M)$","correct":false,"explanation":"This incorrectly adds imports even though they are spending on foreign output. Imports must be subtracted, so aggregate demand is $AD = C + I + G + (X - M)$."}]},{"id":"97782297-06de-4df6-8f11-561d303f5050","cardType":"cloze","points":null,"front":"Net exports are [ ], written [ ].","back":"Net exports are exports minus imports, written X - M.","mcqOptions":[{"text":"Net exports are exports minus imports, written X - M.","correct":true,"explanation":"Exports create demand for domestically produced goods, while imports represent spending on foreign output. Net exports are therefore exports minus imports, written $X - M$."},{"text":"Net exports are imports minus exports, written M - X.","correct":false,"explanation":"This reverses the trade balance calculation. Exports add to aggregate demand and imports are deducted, so net exports are exports minus imports, written $X - M$."},{"text":"Net exports are exports plus imports, written X + M.","correct":false,"explanation":"Adding imports treats spending on foreign production as demand for domestic output. Net exports instead deduct imports from exports and are written $X - M$."},{"text":"Net exports are exports minus imports, written M - X.","correct":false,"explanation":"The verbal definition is correct, but the symbols are reversed. If exports are $X$ and imports are $M$, exports minus imports must be written $X - M$."}]},{"id":"5516d46e-0404-4048-92dd-c8c53b65f6b2","cardType":"basic","points":2,"front":"Calculate AD if C = £1,500bn, I = £350bn, G = £600bn, X = £800bn and M = £900bn.","back":"£2,350bn.","mcqOptions":[{"text":"£2,350bn.","correct":true,"explanation":"Using $AD = C + I + G + (X - M)$ gives £1,500bn + £350bn + £600bn + (£800bn - £900bn) = £2,350bn."},{"text":"£4,150bn.","correct":false,"explanation":"This adds imports instead of subtracting them. Imports are spending on foreign output, so £900bn must be deducted, giving aggregate demand of £2,350bn."},{"text":"£2,450bn.","correct":false,"explanation":"This includes only consumption, investment and government spending, omitting the £100bn trade deficit. Subtracting net imports reduces aggregate demand from £2,450bn to £2,350bn."},{"text":"£2,550bn.","correct":false,"explanation":"This reverses net exports and adds £100bn by calculating imports minus exports. Net exports are £800bn - £900bn = -£100bn, giving £2,350bn."}]},{"id":"3015795a-25f9-4deb-ad30-61fd6aed0244","cardType":"basic","points":2,"front":"When the UK price level rises, why can AD fall through trade?","back":"UK goods become less price competitive, reducing net exports.","mcqOptions":[{"text":"UK goods become less price competitive, reducing net exports.","correct":true,"explanation":"A higher UK price level makes domestic goods relatively more expensive. Exports tend to fall and imports tend to rise, reducing net exports and aggregate demand."},{"text":"UK goods become more price competitive, increasing net exports.","correct":false,"explanation":"This reverses the relative-price effect. A higher UK price level makes UK goods less price competitive, so exports fall, imports rise and net exports decline."},{"text":"Foreign goods become less price competitive, reducing imports.","correct":false,"explanation":"A rise in the UK price level makes foreign goods relatively cheaper, not less competitive. Imports therefore tend to rise while exports fall, reducing net exports."},{"text":"UK goods become less price competitive, increasing net exports.","correct":false,"explanation":"The competitiveness change is correct, but its effect is reversed. Lower competitiveness reduces exports and encourages imports, so net exports and aggregate demand fall."}]},{"id":"9ca993e5-37de-448a-a465-453b9ab41458","cardType":"basic","points":2,"front":"How can a higher price level reduce spending via money balances?","back":"The real value of money balances falls, reducing planned spending.","mcqOptions":[{"text":"The real value of money balances falls, reducing planned spending.","correct":true,"explanation":"When the price level rises, a given nominal amount of money purchases fewer goods and services. This fall in real balances reduces households’ planned spending."},{"text":"The real value of money balances rises, increasing planned spending.","correct":false,"explanation":"This reverses the real balance effect. A higher price level reduces the purchasing power of a fixed nominal money balance, causing planned spending to fall."},{"text":"The nominal value of money balances falls, reducing planned spending.","correct":false,"explanation":"The nominal amount held does not automatically change when prices rise. Its purchasing power falls, so it is the real value of money balances that declines."},{"text":"The real value of money balances stays constant, reducing planned spending.","correct":false,"explanation":"Holding nominal money while the price level rises reduces its purchasing power rather than leaving it unchanged. The real value falls, which reduces planned spending."}]},{"id":"0501158d-24f9-4a95-b615-5c1909433878","cardType":"basic","points":2,"front":"Why does SRAS slope upward in the short run?","back":"Higher output creates cost pressure; rising prices encourage more output.","mcqOptions":[{"text":"Higher output creates cost pressure; rising prices encourage more output.","correct":true,"explanation":"As firms expand output, resource shortages and rising input costs create cost pressure. Higher output prices can protect profitability, encouraging firms to supply more."},{"text":"Higher output creates cost pressure; falling prices encourage more output.","correct":false,"explanation":"Cost pressure may rise as output expands, but falling output prices would squeeze firms’ profit margins. Rising prices are what encourage greater short-run production."},{"text":"Higher output reduces cost pressure; rising prices discourage more output.","correct":false,"explanation":"This reverses both relationships. Expanding output tends to raise marginal costs, while rising output prices improve profitability and encourage firms to increase short-run supply."},{"text":"Higher output creates demand pressure; rising prices encourage more output.","correct":false,"explanation":"This confuses movements along SRAS with aggregate demand pressures. SRAS slopes upward because greater production creates cost pressure and higher prices encourage firms to supply more."}]},{"id":"99977a87-50e9-4c63-ae4e-7b70e9eb2e32","cardType":"cloze","points":null,"front":"LRAS shows the economy’s [ ] when resources are [ ].","back":"LRAS shows the economy’s productive potential when resources are fully and efficiently used.","mcqOptions":[{"text":"LRAS shows the economy’s productive potential when resources are fully and efficiently used.","correct":true,"explanation":"LRAS represents the maximum sustainable output the economy can produce when all factors of production are employed fully and allocated efficiently."},{"text":"LRAS shows the economy’s current output when resources are partly and inefficiently used.","correct":false,"explanation":"LRAS does not show current output or assume inefficient resource use. It shows productive potential when resources are fully and efficiently employed."},{"text":"LRAS shows the economy’s productive potential when resources are substantially underused.","correct":false,"explanation":"Underused resources indicate a negative output gap rather than the output represented by LRAS. LRAS shows productive potential when resources are fully and efficiently used."},{"text":"LRAS shows the economy’s current price level when resources are fully and efficiently used.","correct":false,"explanation":"The price level is measured on the diagram’s vertical axis, not represented by LRAS itself. LRAS shows productive potential when resources are fully and efficiently used."}]},{"id":"4b722ecf-4b16-4d5b-a8fc-ae8c66007e65","cardType":"basic","points":2,"front":"Why can higher AD raise real GDP in the short run?","back":"Sticky wages and prices mean output adjusts before prices fully adjust.","mcqOptions":[{"text":"Sticky wages and prices mean output adjusts before prices fully adjust.","correct":true,"explanation":"Because wages and prices adjust slowly, firms initially respond to stronger aggregate demand by increasing production and employment, so real GDP rises before the price level fully adjusts."},{"text":"Flexible wages and prices mean prices adjust before output fully adjusts.","correct":false,"explanation":"Perfectly flexible wages and prices would allow the price level to adjust quickly, limiting the output response. Higher short-run GDP instead depends on sticky wages and prices."},{"text":"Falling productive capacity means output contracts before prices fully adjust.","correct":false,"explanation":"A fall in productive capacity shifts aggregate supply left and restricts output; it does not explain expansion after higher AD. Sticky wages and prices allow output to adjust first."},{"text":"Lower labour productivity means output rises before prices fully adjust.","correct":false,"explanation":"Lower labour productivity raises unit costs and weakens short-run aggregate supply rather than enabling greater output. Higher AD can raise GDP because wages and prices are sticky."}]},{"id":"63a33c85-52a6-4309-a034-4240a0530554","cardType":"basic","points":2,"front":"What does ceteris paribus mean when shifting AD?","back":"Other things stay unchanged; SRAS is not shifted without a reason.","mcqOptions":[{"text":"Other things stay unchanged; SRAS is not shifted without a reason.","correct":true,"explanation":"Ceteris paribus isolates the effect of the specified AD determinant by holding other influences constant, so SRAS remains in place unless a separate supply-side change occurs."},{"text":"All other things change together; SRAS shifts in the same direction.","correct":false,"explanation":"Ceteris paribus does not mean every variable changes simultaneously. It holds other influences constant, so an AD shift alone does not automatically shift SRAS."},{"text":"The price level stays unchanged; SRAS is fixed at every output level.","correct":false,"explanation":"The assumption is not that prices remain permanently fixed; it means other relevant determinants stay unchanged. SRAS should not shift unless a supply-side reason is given."},{"text":"Other things respond immediately; SRAS shifts in the opposite direction.","correct":false,"explanation":"Ceteris paribus does not require SRAS to move oppositely to AD. It means other conditions are unchanged, isolating the effect of the AD shift."}]},{"id":"66d5f96a-197a-4441-8a50-1c30c99618b3","cardType":"cloze","points":null,"front":"Short-run macroeconomic equilibrium occurs where [ ].","back":"Short-run macroeconomic equilibrium occurs where AD intersects SRAS.","mcqOptions":[{"text":"AD intersects SRAS","correct":true,"explanation":"The intersection of AD and SRAS identifies the short-run equilibrium price level and real output, where planned aggregate expenditure is consistent with firms’ short-run production."},{"text":"AD intersects LRAS","correct":false,"explanation":"AD intersecting LRAS may identify a long-run equilibrium, but short-run macroeconomic equilibrium is specifically found where AD intersects SRAS."},{"text":"SRAS intersects LRAS","correct":false,"explanation":"SRAS intersecting LRAS does not determine the economy’s short-run demand-output balance. Short-run equilibrium occurs where AD intersects SRAS."},{"text":"AD is parallel to SRAS","correct":false,"explanation":"Parallel AD and SRAS curves would not intersect and therefore could not identify an equilibrium price level and output. Short-run equilibrium occurs where AD intersects SRAS."}]},{"id":"851f0f8a-af24-461b-bf5a-5a1d38a63caf","cardType":"cloze","points":null,"front":"Output gap (%) = (([ ]) / [ ]) × 100.","back":"Output gap (%) = ((actual real GDP - potential real GDP) / potential real GDP) × 100.","mcqOptions":[{"text":"Output gap (%) = ((actual real GDP - potential real GDP) / potential real GDP) × 100.","correct":true,"explanation":"The output gap measures actual real GDP minus potential real GDP relative to potential GDP. Multiplying this ratio by 100 expresses the gap as a percentage."},{"text":"Output gap (%) = ((potential real GDP - actual real GDP) / potential real GDP) × 100.","correct":false,"explanation":"Reversing the subtraction reverses the sign, incorrectly making a negative output gap positive. The numerator must be actual real GDP minus potential real GDP."},{"text":"Output gap (%) = ((actual real GDP - potential real GDP) / actual real GDP) × 100.","correct":false,"explanation":"Using actual GDP as the denominator measures the difference relative to current output. The standard output-gap formula divides actual minus potential GDP by potential GDP."},{"text":"Output gap (%) = ((actual real GDP + potential real GDP) / potential real GDP) × 100.","correct":false,"explanation":"Adding actual and potential GDP does not calculate the gap between them and produces an implausibly large percentage. The numerator must be actual minus potential GDP."}]},{"id":"8cab3e0a-105c-4d41-bd89-25bc8d70e785","cardType":"basic","points":2,"front":"Calculate the output gap if actual GDP is £2,340bn and potential GDP is £2,400bn.","back":"-2.5%.","mcqOptions":[{"text":"-2.5%.","correct":true,"explanation":"The gap is £2,340bn - £2,400bn = -£60bn. Dividing by £2,400bn and multiplying by 100 gives -2.5%, indicating output below potential."},{"text":"+2.5%.","correct":false,"explanation":"This sign results from subtracting actual GDP from potential GDP. The formula uses actual minus potential, giving -£60bn divided by £2,400bn, or -2.5%."},{"text":"-2.6%.","correct":false,"explanation":"Dividing the £60bn shortfall by actual GDP rather than potential GDP gives approximately 2.6%. The correct denominator is £2,400bn, producing -2.5%."},{"text":"-0.025%.","correct":false,"explanation":"This leaves the result as a decimal percentage without multiplying the ratio by 100. The ratio -0.025 corresponds to an output gap of -2.5%."}]},{"id":"de97eb36-876f-400c-8bcb-9a84ec77af03","cardType":"basic","points":1,"front":"What type of unemployment is likely in a negative output gap?","back":"Cyclical unemployment.","mcqOptions":[{"text":"Cyclical unemployment.","correct":true,"explanation":"A negative output gap means aggregate demand and real output are below potential, so firms require fewer workers and cyclical unemployment rises."},{"text":"Structural unemployment.","correct":false,"explanation":"Structural unemployment arises from persistent mismatches between workers’ skills or locations and available jobs. A demand-related negative output gap primarily creates cyclical unemployment."},{"text":"Frictional unemployment.","correct":false,"explanation":"Frictional unemployment occurs while people move between jobs and exists even near full employment. A negative output gap is principally associated with cyclical unemployment."},{"text":"Seasonal unemployment.","correct":false,"explanation":"Seasonal unemployment follows predictable changes in labour demand during the year. The economy-wide demand deficiency represented by a negative output gap causes cyclical unemployment."}]},{"id":"2ab9684d-9c3d-4a79-b49b-b1dfe1cfa456","cardType":"cloze","points":null,"front":"A [ ] an AD/AS curve is caused by a price-level change; a [ ] is caused by a non-price factor.","back":"A movement along an AD/AS curve is caused by a price-level change; a shift is caused by a non-price factor.","mcqOptions":[{"text":"A movement along an AD/AS curve is caused by a price-level change; a shift is caused by a non-price factor.","correct":true,"explanation":"A change in the price level changes the quantity of aggregate demand or supply, producing movement along a curve. A non-price determinant relocates the entire curve."},{"text":"A shift an AD/AS curve is caused by a price-level change; a movement along is caused by a non-price factor.","correct":false,"explanation":"The relationships have been reversed. A price-level change causes movement along an existing curve, whereas a non-price determinant causes the whole curve to shift."},{"text":"A movement along an AD/AS curve is caused by a price-level change; a movement along is caused by a non-price factor.","correct":false,"explanation":"The first term is correct, but a non-price factor changes the position of the curve rather than causing another movement along it, so the second term must be shift."},{"text":"A shift an AD/AS curve is caused by a price-level change; a shift is caused by a non-price factor.","correct":false,"explanation":"The second term is correct, but a price-level change does not shift the curve. It changes quantity demanded or supplied and therefore causes movement along the curve."}]},{"id":"20d9fbe9-6d13-43e1-a4d9-db36b2ad7adb","cardType":"basic","points":2,"front":"How do lower interest rates tend to affect AD?","back":"AD shifts right as borrowing and spending rise.","mcqOptions":[{"text":"AD shifts right as borrowing and spending rise.","correct":true,"explanation":"Lower interest rates reduce borrowing costs and discourage saving, increasing consumption and investment. These components of aggregate demand rise, shifting the AD curve to the right."},{"text":"AD shifts left as borrowing and spending fall.","correct":false,"explanation":"Lower rates normally stimulate rather than reduce borrowing and spending. Consumption and investment therefore increase, so AD shifts right rather than left."},{"text":"AD moves upward as borrowing and spending rise.","correct":false,"explanation":"This confuses a movement along the AD curve with a shift of the curve. Lower interest rates increase consumption and investment, shifting AD right."},{"text":"AD remains unchanged as borrowing and spending rise.","correct":false,"explanation":"Holding AD unchanged overlooks the interest-rate transmission mechanism. Cheaper credit encourages consumption and investment, causing aggregate demand to shift to the right."}]},{"id":"f2335757-b88a-42ec-894f-2c6f6cbea887","cardType":"basic","points":1,"front":"What happens to SRAS if production costs fall?","back":"SRAS shifts right.","mcqOptions":[{"text":"SRAS shifts right.","correct":true,"explanation":"Lower production costs make supplying each level of real output more profitable. Firms increase planned production at each price level, shifting SRAS to the right."},{"text":"SRAS shifts left.","correct":false,"explanation":"A leftward shift results from rising, not falling, production costs. Lower costs allow firms to supply more at each price level, shifting SRAS right."},{"text":"AD shifts right.","correct":false,"explanation":"This mistakes a supply-side determinant for a change in aggregate demand. Falling production costs affect firms’ willingness to produce, so SRAS shifts right."},{"text":"SRAS moves upward.","correct":false,"explanation":"A movement along SRAS is caused by a change in the price level. Falling production costs change supply conditions, shifting the entire SRAS curve right."}]},{"id":"6dc22d0d-a162-4e9f-8447-a2ae07fcf701","cardType":"basic","points":2,"front":"How does an oil price shock affect SRAS?","back":"SRAS shifts left because firms’ costs rise.","mcqOptions":[{"text":"SRAS shifts left because firms’ costs rise.","correct":true,"explanation":"Oil is an important input for production and transport. A rise in its price increases firms’ costs, reducing output supplied at each price level and shifting SRAS left."},{"text":"SRAS shifts right because firms’ costs rise.","correct":false,"explanation":"This reverses the supply response to higher input costs. An adverse oil price shock raises firms’ costs and reduces aggregate supply, shifting SRAS left."},{"text":"AD shifts left because consumers’ spending falls.","correct":false,"explanation":"An oil price shock primarily changes production costs rather than planned economy-wide expenditure. Higher costs therefore shift SRAS left, rather than shifting AD."},{"text":"SRAS moves upward because firms’ output rises.","correct":false,"explanation":"This confuses a shift with movement along a curve. Higher oil costs alter firms’ supply conditions, causing the entire SRAS curve to shift left."}]},{"id":"8b6f268b-f8e8-4856-8611-3530b3847344","cardType":"cloze","points":null,"front":"A leftward SRAS shift can cause [ ]: rising inflation with [ ].","back":"A leftward SRAS shift can cause stagflation: rising inflation with falling real output.","mcqOptions":[{"text":"A leftward SRAS shift can cause stagflation: rising inflation with falling real output.","correct":true,"explanation":"A negative supply shock raises the price level while reducing real output. The resulting combination of inflation and economic stagnation is known as stagflation."},{"text":"A leftward SRAS shift can cause reflation: rising inflation with rising real output.","correct":false,"explanation":"Reflation usually involves policies that increase demand and restore output. A leftward SRAS shift instead combines rising inflation with falling real output, producing stagflation."},{"text":"A leftward SRAS shift can cause economic growth: rising inflation with falling real output.","correct":false,"explanation":"Falling output is consistent with a leftward SRAS shift, but the combination with rising inflation is stagflation, not economic growth."},{"text":"A leftward SRAS shift can cause stagflation: rising inflation with rising real output.","correct":false,"explanation":"A leftward SRAS shift reduces equilibrium output rather than increasing it. Rising inflation combined with falling real output is correctly described as stagflation."}]},{"id":"6df14ac8-dfad-4306-b687-a3f53d47557f","cardType":"basic","points":3,"front":"Why may a rightward AD shift worsen the current account?","back":"

Imports rise as spending increases.
Exports become less competitive if prices rise.

","mcqOptions":[{"text":"

Imports rise as spending increases.
Exports become less competitive if prices rise.

","correct":true,"explanation":"Higher aggregate demand increases expenditure on foreign goods, while domestic inflation can make exports relatively dearer. Both effects may increase the current account deficit."},{"text":"

Imports fall as spending increases.
Exports become more competitive if prices rise.

","correct":false,"explanation":"Higher domestic spending generally raises demand for imports rather than reducing it. Rising domestic prices can also weaken export competitiveness, worsening the current account."},{"text":"

Imports fall as spending decreases.
Exports become more competitive if prices rise.

","correct":false,"explanation":"This reverses both channels. Stronger spending tends to increase imports, while domestic price rises make exports less competitive against foreign alternatives."},{"text":"

Imports fall as saving increases.
Exports become less competitive if prices fall.

","correct":false,"explanation":"A rise in aggregate demand does not normally reduce imports, and inflation does not improve price competitiveness. Imports rise while exports may become less competitive."}]},{"id":"aba06377-b311-444c-a553-9364849637fa","cardType":"basic","points":2,"front":"Why is inflationary pressure limited when AD rises from a negative output gap?","back":"Spare capacity lets firms expand without bidding up costs much.","mcqOptions":[{"text":"Spare capacity lets firms expand without bidding up costs much.","correct":true,"explanation":"A negative output gap means labour and capital are underused. Firms can therefore increase production without encountering severe shortages or sharply increasing wages and input prices."},{"text":"Full capacity lets firms expand without bidding up costs much.","correct":false,"explanation":"Full capacity would make additional production difficult and intensify inflationary pressure. With a negative output gap, spare capacity allows output to rise with limited cost increases."},{"text":"Labour shortages let firms expand without bidding up costs much.","correct":false,"explanation":"Labour shortages tend to raise wages and inflation rather than limit them. Inflationary pressure is subdued because unemployed resources provide spare productive capacity."},{"text":"Rising input prices let firms expand without bidding up costs much.","correct":false,"explanation":"Rising input prices directly increase firms’ costs and would strengthen inflationary pressure. Spare capacity instead permits firms to expand production without bidding costs up substantially."}]},{"id":"9d87f42e-e405-4e45-b09d-98fc80d65c25","cardType":"basic","points":2,"front":"If the economy is close to full capacity, what is the main effect of higher AD?","back":"Demand-pull inflation, because output cannot sustainably exceed potential.","mcqOptions":[{"text":"Demand-pull inflation, because output cannot sustainably exceed potential.","correct":true,"explanation":"Near full capacity, firms have little scope to increase sustainable real output. Additional aggregate demand therefore mainly raises the price level, creating demand-pull inflation."},{"text":"Cost-push inflation, because output cannot sustainably exceed potential.","correct":false,"explanation":"Cost-push inflation originates from rising production costs or a leftward SRAS shift. Higher AD near full capacity instead produces demand-pull inflation."},{"text":"Demand-deficient unemployment, because output cannot sustainably exceed potential.","correct":false,"explanation":"Demand deficiency occurs when aggregate demand is too low, typically creating unemployment and a negative output gap. Higher AD near capacity instead causes demand-pull inflation."},{"text":"Demand-side deflation, because output cannot sustainably exceed potential.","correct":false,"explanation":"Deflation involves a sustained fall in the general price level and is inconsistent with excess demand near capacity. Higher AD chiefly creates demand-pull inflation."}]},{"id":"c6b7ec20-04f0-4e7b-8e38-4fa5db73a437","cardType":"cloze","points":null,"front":"With a [ ] SRAS, AD rises mostly raise prices; with a [ ] SRAS, they mostly raise output.","back":"With a steep SRAS, AD rises mostly raise prices; with a flatter SRAS, they mostly raise output.","mcqOptions":[{"text":"With a steep SRAS, AD rises mostly raise prices; with a flatter SRAS, they mostly raise output.","correct":true,"explanation":"A steep SRAS curve means output responds weakly to stronger demand, so prices rise substantially. A flatter curve permits a larger output response with less inflation."},{"text":"With a flatter SRAS, AD rises mostly raise prices; with a steep SRAS, they mostly raise output.","correct":false,"explanation":"The relationships have been reversed. A flatter SRAS allows output to respond strongly, whereas a steep SRAS makes an increase in AD raise prices mainly."},{"text":"With a flat SRAS, AD rises mostly raise prices; with a flatter SRAS, they mostly raise output.","correct":false,"explanation":"A flat SRAS indicates abundant spare capacity, so higher AD primarily raises output rather than prices. A flatter curve therefore cannot support the stated price effect."},{"text":"With a steep SRAS, AD rises mostly raise prices; with a steeper SRAS, they mostly raise output.","correct":false,"explanation":"A steeper SRAS makes supply less responsive, so stronger demand raises prices rather than output. Output responds most when SRAS is relatively flat."}]},{"id":"16deea61-a9e3-44a8-9f26-64bbd69bb620","cardType":"basic","points":2,"front":"Why is a rightward LRAS shift a sustainable route to growth?","back":"It raises productive potential, allowing higher GDP without the same inflation pressure.","mcqOptions":[{"text":"It raises productive potential, allowing higher GDP without the same inflation pressure.","correct":true,"explanation":"A rightward LRAS shift increases the economy’s capacity to produce. Output can therefore grow sustainably without creating the excess demand and rising prices associated with demand-led growth."},{"text":"It raises aggregate demand, allowing higher GDP without the same inflation pressure.","correct":false,"explanation":"This confuses supply-side growth with demand-led growth. Higher aggregate demand can increase real GDP temporarily, but may cause inflation; higher productive potential permits sustainable, less inflationary growth."},{"text":"It lowers productive potential, allowing higher GDP without the same inflation pressure.","correct":false,"explanation":"This reverses the relationship between capacity and growth. Lower productive potential restricts sustainable output, whereas a rightward LRAS shift raises productive potential and reduces inflationary pressure at higher GDP."},{"text":"It raises short-run output, allowing higher GDP without permanently increasing productive capacity.","correct":false,"explanation":"This mistakes a temporary increase in actual output for sustainable growth. A rightward LRAS shift permanently expands productive capacity, allowing higher GDP without the same inflationary pressure."}]}]}],"examCountdown":{"examDate":"2027-05-10","paperLabel":"Paper 1"},"heading":"The interaction of aggregate demand and supply","title":"The interaction of aggregate demand and supply Flashcards","topbar":{"backHref":"/a-level/economics/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"1f4dcd5e-9e0a-59f1-b135-12181bba3e2a","walled":"$L39"}],"$L3a","$L3b"]