How the Macroeconomy Works (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What are the two primary factors that influence the SRAS curve?
What are the two primary factors that influence the SRAS curve?
Price level and production costs
When AD increases on a flat section of SRAS, what is the main effect?
When AD increases on a flat section of SRAS, what is the main effect?
Increased real output, small price rise
What does a shift in the SRAS curve represent?
What does a shift in the SRAS curve represent?
Change in output at any given price
Which factor causes a rightward shift in SRAS?
Which factor causes a rightward shift in SRAS?
Fall in unit labour costs
What is the combined effect of a leftward SRAS shift called?
What is the combined effect of a leftward SRAS shift called?
Stagflation
What does the normal capacity level of output represent?
What does the normal capacity level of output represent?
Maximum sustainable production level
Which factor determines the position of the LRAS curve?
Which factor determines the position of the LRAS curve?
Labour productivity
In the free-market view, how does the LRAS curve appear?
In the free-market view, how does the LRAS curve appear?
Vertical line
What shape characterizes the Keynesian LRAS curve?
What shape characterizes the Keynesian LRAS curve?
Inverted L-shape
Why can't production above normal capacity be sustained?
Why can't production above normal capacity be sustained?
Factor shortages drive up costs