Cambridge AS & A Level Economics
4.3Aggregate demand and aggregate supply analysis
Aggregate demand and aggregate supply analysis in Cambridge AS & A Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic75 practice questions3 lessons
Learning objectives
What the syllabus expects you to be able to do.
- 4.3.1Define aggregate demand.
- 4.3.2Explain the components of AD: AD = C + I + G + (X - M).
- 4.3.3Explain the determinants of AD (detailed knowledge of components is not required).
- 4.3.4Explain the downward-sloping shape of the AD curve.
- 4.3.5Explain the causes of a shift in the AD curve.
- 4.3.6Define aggregate supply.
- 4.3.7Explain the determinants of AS.
- 4.3.8Describe the shape of SRAS and of LRAS (a vertical line, or in three sections).
- 4.3.9Explain the causes of a shift in SRAS and in LRAS.
- 4.3.10Distinguish a movement along from a shift in AD and AS.
- 4.3.11Explain how equilibrium real output, the price level and employment are established in the AD/AS model.
- 4.3.12Explain the effects of shifts in AD and AS on real output, the price level and employment.
Lessons
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Aggregate demand: components, determinants and the AD curve
55 min
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Aggregate supply: short-run and long-run AS, determinants and shifts
55 min
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Macroeconomic equilibrium in the AD/AS model and the effects of shifts
65 min
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Sample question
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