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Pearson Edexcel IAL Economics 2.3.3.3a Different shapes of AS curve: (LR

Practise comparing Keynesian and classical LRAS shapes, focusing on spare capacity, full employment output and price-level responses.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • identify classical LRAS as perfectly inelastic at the full employment level of output
  • compare Keynesian spare-capacity sections with classical full-capacity constraints

2.3.3.3a - Different shapes of AS curve: (LRAS) • Keynesian • classical question 1

[Maximum number: 1]

Which statement about the Keynesian LRAS curve is correct?

A

Perfectly inelastic at full employment

B

Relatively elastic at full employment

C

Relatively inelastic with spare capacity

D

Perfectly inelastic with spare capacity

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