WorksheetsEconomics - AS
Total questions: 10
Worksheet time: 6mins
The definition of AS is which of the following?
Total supply of goods and services produced within an economy at a given price in a given period
Total of consumer spending, investment, government spending, and net exports
Total demand for goods and services produced within an economy at a given price in a given period
Total supply of goods and services produced for export within an economy
Why does the AS curve slope upwards?
Due to the wealth effect on consumption
As the price level falls the interest rate also tends to fall
Lower prices leads to an increase in demand for exports
Firms do not have flexibility to vary inputs in short run, so will only increase production by varying intensity of utilisation of inputs in response to higher prices
A shift in the AD curve will have what impact on AS?
Shift left
Contraction / expansion
Shift right
Which of the following changes will cause the AS curve to shift?
Costs of production
Labour productivity
Price levels
Taxes such as VAT
Shifts in the AD curve
An increase in wages will cause what impact to the AS curve?
Shift right
Expansion
Contraction
Shift left
The long run aggregate supply curve is influenced by which of the following factors? Choose three.
Size of the workforce
Level of education and training
Prices
Consumer expenditure
Labour productivity
This graph represents which view of LRAS?
Keynesian
Classical
When the economy has plenty of spare capacity and LRAS is elastic, an increase in AD will lead to what impact on prices?
Significant inflation
Hyperinflation
Modest increase in prices
Reduction in prices
When the economy is close to the full employment level of national income and LRAS is inelastic, an increase in AD will lead to what impact on prices?
Significant inflation
Reduction in demand
Modest increase in prices
Reduction in prices
An increase in the quantity and / or quality of factors of production will have what impact on the LRAS curve (and / or PPF)?
Shift left
No impact
Shift right
