AS Paper 2, June 2018The UK Economy – Performance and Policies
AS Paper 2, June 2018, Q4(c)
Which one of the following factors is most likely to cause an increase in the long-run aggregate supply?
Multiple choice1 mark
Context
The diagram below shows the aggregate demand (AD) and short-run aggregate supply (SRAS) for the UK. Price level SRAS P AD Y Real output …
ADecrease in investment
BIncrease in relative productivity
CIncrease in the level of unemployment benefits
DReduced access to credit for consumers and businesses