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WorksheetsThe AD /AS model
Total questions: 10
Worksheet time: 5mins
The AD/AS model shows the relationship between output and
the price level
income
aggregate expenditure
taxation
The Aggregate Supply curve shows
the impact of changes in output on the price level
the impact of the price level on output
The AD curve slopes down because
at high prices less is consumed and produced
its the same as demand curve
supply has to cut across
all of these reasons
If there is an increases in wages and firms pay more when producing goods then the
AD curve shifts right
AD curve shifts left
AS curve shifts right
AS curve shifts left
Which of the following factors will not shift the AD curve right?
increase in the cost of labour
increase in consumer confidence
increased exports
increased investment
What would happen if the volume of imports into australia increased?
AD shift left
AD shift right
AS shift left
As shift right
