CAIE A-Level Economics 4.3.9 AS shifts

CAIE A-Level Economics 4.3.9 AS shifts
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise analysing shifts in SRAS and LRAS from wages, oil prices, productivity, taxes, subsidies and long-run capacity changes.

How this is tested

  • use an AS diagram to show how wages, oil prices, taxes or subsidies shift SRAS
  • explain how productivity or capacity changes can increase AS and affect output and prices
  • evaluate benefits and costs of higher AS for inflation, growth, employment and trade-offs

Question 24

[Maximum number: 1]

What is a certain outcome on an aggregate demand and aggregate supply diagram of an increase in factor productivity?

A

downward shift of the aggregate demand curve

B

downward shift of the aggregate supply curve

C

an upward shift of the aggregate demand curve

D

an upward shift of the aggregate supply curve