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Edexcel A-Level Economics AS 2.3.4 3b Causes of Changes in Equilibrium Real National Output As a Result of Shifts in Ad Questions

Use Edexcel IAL Economics 2.3.4.3b questions to draw AD/AS diagrams after demand shocks and show the resulting equilibrium price level and real output.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • draw an AD/AS diagram after a contractionary demand shock from interest rates, house prices or confidence, showing the new price level and real output
  • draw an AD/AS diagram for an oil-export price rise, showing a rightward AD shift and higher price level and real output

Edexcel A-Level Economics AS 2.3.4 3b Causes of Changes in Equilibrium Real National Output As a Result of Shifts in Ad Questions question 1

[Maximum number: 4]

Between May 2022 and April 2023 the central bank of Nigeria increased the country's base rate of interest by six percentage points. Draw an AD and LRAS diagram to show the effect of this increase in the base rate of interest on consumption, the price level and real output.

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