CAIE A-Level Economics AS 4.3.12 Ad As Shift Effects Questions

Practise using AD-AS diagrams to analyse how demand and supply shocks, policy changes and cost movements affect equilibrium output, prices, employment and inflation.

Exam points

Analyse how AD and AS shifts change equilibrium real output, the general price level, employment and macroeconomic performance.

[Maximum number: 1]

A major trading nation, country X, is in equilibrium at the full employment level of real output. There is then a recession in its main international markets.

What are the most likely consequences of this change for country X?

rate of inflation

unemployment

decrease

increase

unchanged

decrease

unchanged

increase

All question bank results loaded

CAIE A-Level Economics AS 4.3.12 Ad As Shift Effects Questions question 1