Question 18
[Maximum number: 1]
Which change is shown directly by the use of aggregate demand and aggregate supply analysis?
A
the nominal income level
B
the price level
C
the unemployment level
D
the wage level
CAIE A-Level Economics 4.3.11 AD/AS equilibrium
Practise finding AD/AS equilibrium and explaining how shifts change real output, the price level and employment in macro diagrams.
How this is tested
- locate equilibrium where AD and AS intersect and read real output and price level
- use AD/AS shifts to predict changes in national income, prices and employment
- interpret tables or diagrams to find equilibrium real output in a macroeconomic model