Edexcel A Level Economics A
Edexcel A Level Economics A 2.3 Aggregate Supply Exam Questions
Free Edexcel A Level Economics A exam questions on 2.3 Aggregate Supply, with mark schemes. Covers short run and long run aggregate supply and what shifts them.
2.3 Aggregate Supply exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
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Edexcel A Level Economics A 9EC0 Flashcards (Anki & Quizlet)
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Use them on Anki or Quizlet, then test yourself with the questions on this page.
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About Edexcel A Level Economics A 2.3 Aggregate Supply
2.3 covers the supply side of the AD/AS model. Exam questions test whether you can tell short run and long run shifts apart and draw the right shape of LRAS for the Keynesian and classical views.
What you need to know
- Short run aggregate supply Shifts with changes in costs of raw materials and energy, exchange rates and tax rates.
- Long run aggregate supply Shifts with technology, productivity, education and skills, government regulation, demographic changes and migration, and competition policy.
- Keynesian and classical LRAS The classical LRAS is vertical at full capacity. The Keynesian LRAS is horizontal when there is spare capacity, then upward sloping, then vertical at full employment.
- Diagrams Show SRAS shifts and LRAS shifts on separate diagrams, labelling price level and real output.
Common mistakes in 2.3 Aggregate Supply
- Shifting LRAS for a cost change such as oil prices. That shifts SRAS.
- Drawing a Keynesian LRAS without the horizontal section.
- Labelling the axes "price" and "quantity" instead of price level and real national output.
- Saying higher productivity shifts SRAS only. It is mainly a long run shift.
Try three 2.3 Aggregate Supply exam-style questions
1. Explain the difference between a shift in SRAS and a shift in LRAS. (4 marks)
Show the mark scheme answer
SRAS shifts because of changes in costs of production (1), for example a rise in oil prices (1). LRAS shifts because of changes in the quantity or quality of factors of production, which change productive capacity (1), for example improvements in education (1).
2. Explain the effect of a large rise in global energy prices on UK aggregate supply. (3 marks)
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Energy is a major cost of production (1), so firms' costs rise (1) and SRAS shifts left, raising the price level and reducing real output (1).
3. State two factors that could shift the long run aggregate supply curve to the right. (2 marks)
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Any two from: new technology, higher productivity, improved education and skills, net inward migration, lower regulation, more competition (1 each).
2.3 Aggregate Supply FAQs
What does Edexcel A Level Economics 2.3 cover?
The characteristics of AS, factors that shift SRAS and LRAS, and the Keynesian and classical LRAS curves.
Which LRAS curve should I draw?
Use whichever fits the question. If spare capacity matters, the Keynesian curve shows that output can rise without inflation.
How does 2.3 link to supply-side policies?
Supply-side policies in 2.6 aim to shift LRAS to the right by raising productivity and the productive capacity of the economy.
Revise this topic with flashcards: Edexcel A Level Economics A 9EC0 Flashcards, with mark scheme answers for Anki and Quizlet.
