CAIE A-Level Economics 4.3.11 AD/AS equilibrium
Practise finding AD/AS equilibrium and explaining how shifts change real output, the price level and employment in macro diagrams.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- AS
Exam points
- locate equilibrium where AD and AS intersect and read real output and price level
- use AD/AS shifts to predict changes in national income, prices and employment
- interpret tables or diagrams to find equilibrium real output in a macroeconomic model
4.3.11—AD/AS equilibrium question 1
[Maximum number: 8]
Using a diagram, explain the significance for an economy of the interaction of aggregate demand and aggregate supply.
For knowledge and understanding that uses a correctly labelled diagram (1 mark) to show that equilibrium exists in the economy at the intersection of AD and AS (1 mark)
(KU: up to 2 marks)
Using a diagram:-
For application showing how either an increase or decrease in aggregate demand in terms of its impact upon prices, employment and real output is determined by its interaction with aggregate supply curve. (Up to 3 marks)
For application showing how either an increase or decrease in aggregate supply in terms of its impact upon prices, employment and real output is determined by its interaction with aggregate demand curve. (Up to 3 marks)
8
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