Lesson 4.2.2.2
4.2.2.2 Aggregate demand and aggregate supply analysis Quiz: AQA Economics, Unit 2
20 questions
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Lesson 4.2.2.2, Aggregate demand and aggregate supply analysis: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.
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The 20 questions
-
On an AD/AS diagram, what does a change in the price level cause?
- Shift of AD
- Shift of LRAS
- Shift of SRAS
- Movement along curves
-
Which event will shift the aggregate demand curve to the right?
- Increased income tax
- Increased government spending
- Decreased investment
- Decreased exports
-
Which event shifts the short-run aggregate supply curve to the left?
- Higher consumer spending
- Lower material costs
- Higher wage rates
- Higher investment spending
-
Which factor causes a rightward shift of the long-run aggregate supply curve?
- Lower interest rates
- Higher consumer spending
- Technological progress
- Higher price level
-
On an AD/AS diagram, how is underlying economic growth represented?
- Leftward LRAS shift
- Rightward LRAS shift
- Leftward SRAS shift
- Rightward AD shift
-
What factor primarily increases the long-run aggregate supply of an economy?
- Technological progress
- Higher interest rates
- Lower import tariffs
- Higher raw costs
-
What is the typical short-run macroeconomic effect of a negative demand-side shock?
- Lower output and prices
- Lower output, higher prices
- Higher output, lower prices
- Higher output and prices
-
What is the typical short-run macroeconomic effect of a negative supply-side shock?
- Higher output and prices
- Lower output and prices
- Higher output, lower prices
- Lower output, higher prices
-
Where is short-run macroeconomic equilibrium found on an AD/AS diagram?
- AD equals LRAS
- AD equals SRAS
- AS equals GDP
- AD equals AS
-
At full employment, what is the main long-run effect of increased aggregate demand?
- Higher productive capacity
- Higher real output
- Lower price level
- Higher price level
-
What does an AD/AS diagram primarily help economists to illustrate?
- Microeconomic elasticity
- Individual firm costs
- Macroeconomic equilibrium
- Individual market failure
-
In the short run, how does a significant rise in consumer confidence affect the macroeconomy?
- Lower output, higher prices
- Higher output, lower prices
- Lower output and prices
- Higher output and prices
-
Which factor causes a leftward shift of the aggregate demand curve?
- Increased export demand
- Increased household debt
- Lower interest rates
- Increased government investment
-
What causes the short-run aggregate supply curve to shift to the left?
- Higher tax rates
- Higher unit costs
- Lower wage rates
- Increased productivity
-
Which demand-side policy will shift the aggregate demand curve to the right?
- Government spending cut
- Income tax increase
- Interest rate increase
- Income tax cut
-
What determines maximum real output when the long-run aggregate supply curve is vertical?
- Productive capacity
- Exchange rate
- Aggregate demand
- Price level
-
How does a reduction in business taxation affect short-run aggregate supply?
- Rightward SRAS shift
- Rightward AD shift
- Movement along SRAS
- Leftward SRAS shift
-
Why does the short-run aggregate supply curve slope upwards as price level rises?
- Decreasing productive potential
- Higher profit margins
- Constant wage rates
- Falling production costs
-
What causes a leftward shift of the long-run aggregate supply curve?
- Higher wage rates
- Emigration of workers
- Increased capital investment
- A fall in consumption
-
Which shift on an AD/AS diagram directly causes stagflation in an economy?
- Rightward SRAS shift
- Rightward AD shift
- Leftward SRAS shift
- Leftward AD shift
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