Lesson 4.2.2.5

4.2.2.5 Determinants of short-run aggregate supply Quiz: AQA Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.2.2.5, Determinants of short-run aggregate supply: 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

  1. What is the main determinant of the position of the short-run aggregate supply curve?

    • Consumer confidence
    • Exchange rates only
    • Production costs
    • Level of savings

  2. Which factor shift causes the short-run aggregate supply curve to move left?

    • Lower raw material prices
    • Reduced business taxation
    • Higher productivity
    • Higher wage rates

  3. Which factor shifts the short-run aggregate supply curve to the right?

    • Lower labour productivity
    • Higher business taxes
    • Rising money wages
    • Lower commodity prices

  4. Which change causes a movement along the short-run aggregate supply curve?

    • Money wage rates
    • Raw material prices
    • Price level change
    • Business taxation

  5. How does an increase in business taxation affect the short-run aggregate supply curve?

    • Shift right
    • Remain unchanged
    • Shift left
    • Become vertical

  6. Higher labour productivity shifts the short-run aggregate supply curve right by reducing what?

    • Unit labour costs
    • Money wage rates
    • Business taxation
    • Raw material prices

  7. Which factor causes a shift in the short-run aggregate supply curve?

    • Consumer confidence
    • Income tax rates
    • Interest rates
    • Raw material prices

  8. A rise in money wage rates with constant productivity causes SRAS to do what?

    • Shift right
    • Remain unchanged
    • Become vertical
    • Shift left

  9. What happens to the price level and real output when SRAS shifts left?

    • Prices rise, output falls
    • Prices fall, output falls
    • Prices rise, output rises
    • Prices fall, output rise

  10. A cut in employers' National Insurance contributions causes SRAS to shift in which direction?

    • Left
    • Vertically
    • Upwards
    • Right

  11. A fall in unit production costs across the economy causes SRAS to shift where?

    • Upwards
    • Left
    • Right
    • Vertically

  12. A depreciation of sterling that raises imported raw material costs causes SRAS to do what?

    • Remain unchanged
    • Become horizontal
    • Shift left
    • Shift right

  13. Which factor can offset the cost impact of rising money wage rates on SRAS?

    • Higher business taxes
    • Rising interest rates
    • Increased productivity
    • Import tariffs

  14. What combined effect occurs when production costs increase sharply across the economy?

    • Prices rise, output rises
    • Prices fall, output falls
    • Prices rise, output falls
    • Prices fall, output rises

  15. Why does the short-run aggregate supply curve slope upwards?

    • Constant profit margins
    • Sticky input costs
    • Perfect information
    • Flexible wage rates

  16. Simultaneous increases in money wages and business taxes cause SRAS to do what?

    • Shift right
    • Shift left
    • Remain unchanged
    • Become horizontal

  17. A firm faces a 4% rise in money wages but its productivity rises by 2%. Approximately what is the change in unit labour cost?

    • About minus 2%
    • About 6%
    • About 2%
    • About 4%

  18. Higher wage costs squeezing profit margins at constant price levels lead firms to do what?

    • Lower prices
    • Increase output
    • Increase investment
    • Reduce output

  19. Why does a leftward shift in SRAS create a macroeconomic policy problem?

    • Excess consumer demand
    • Falling price level
    • Surplus budget balance
    • Inflation-unemployment trade-off

  20. A fall in both wage rates and raw material prices causes SRAS to do what?

    • Pivot vertically
    • Remain unchanged
    • Shift right
    • Shift left

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