CAIE A-Level Economics AS 4.3.9 As Shifts Questions

Practise explaining rightward and leftward shifts in SRAS and LRAS using factor costs, productivity, taxes, subsidies, resources, immigration and investment.

Exam points

Explain how factor costs, productivity, taxation, subsidies, resources and workforce changes shift short-run and long-run aggregate supply.

[Maximum number: 1]

The diagram shows the aggregate demand (AD) and aggregate supply (AS) for an economy.

Figure for Question CAIE A-Level Economics AS 4.3.9 As Shifts Questions question 1 — CAIE A-Level Economics AS

Which changes in subsidies and indirect taxes would have caused the change from $A S_{1}$ to $A S_{2}$ ?

higher subsidies and higher indirect taxes

higher subsidies and lower indirect taxes

lower subsidies and higher indirect taxes

lower subsidies and lower indirect taxes

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CAIE A-Level Economics AS 4.3.9 As Shifts Questions question 1