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CAIE A-Level Economics 4.3.5 Aggregate Demand Shifts

Practise shifting aggregate demand from changes in consumption, investment, government spending or net exports and separating these shifts from price-level movements.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • map the event to consumption, investment, government spending or net exports before shifting AD
  • draw a rightward or leftward AD shift while keeping the general price level as an axis variable
  • distinguish a price-level movement along AD from policy, confidence or external-demand shifts

4.3.5—AD shifts question 1

[Maximum number: 8]

Outline the components of aggregate demand and explain one cause of an increase and one cause of a decrease in aggregate demand in an economy.

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