Specification point 2.2.1 · Theme 2
Aggregate demand (AD) · The UK economy – performance and policies
Questions tagged to this specification point
14 questions
Long-form evaluation and discussion
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Questions built around exam extracts
Case study · The German economy
With reference to Extract B, discuss the impact of the planned investment by Intel in a new semiconductor factory on Germany’s aggregate demand. Use an aggregate demand and aggregate supply diagram in your answer.
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Case study · Ghana – cocoa and chocolate production
Discuss factors influencing the level of aggregate demand in Ghana. Use an aggregate demand and aggregate supply diagram in your answer.
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Case study · UK government budget and household consumption
Assess the likely impact on the UK economy of an ‘increase in consumption’ (Extract A, lines 5–6). Use an aggregate demand and aggregate supply diagram in your answer.
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Case study · The UK economy
With reference to Extract A, assess the likely macroeconomic effects of an increase in house prices. Use an aggregate demand and aggregate supply diagram in your answer.
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Focused calculations, explanations and diagrams
Annotate the aggregate demand (AD) and short-run aggregate supply (SRAS) diagram below to show the likely impact of a fall in business investment on the equilibrium level of real output and the price level.
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Draw an aggregate demand and aggregate supply diagram to illustrate the likely impact of an increase in the UK base interest rate on the average price level and real output.
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Annotate the aggregate demand (AD) and aggregate supply (AS) diagram below to show the likely impact of a fall in business investment on the equilibrium level of real output and the price level.
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Annotate the aggregate demand (AD) and aggregate supply (AS) diagram below to show the likely impact of an improvement in net trade on the equilibrium level of real output and the price level.
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Draw an aggregate demand and aggregate supply diagram to show the likely impact of this new bridge on the price level and real output in the region.
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Annotate the aggregate demand (AD) and short-run aggregate supply (SRAS) diagram below to show the possible impact of a rise in the base interest rate on the equilibrium level of real output and the price level.
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Draw an aggregate demand and aggregate supply diagram illustrating the likely impact of a rise in interest rates on the price level and real output.
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Define the term ‘aggregate demand’.
Diagram A shows the aggregate demand and aggregate supply for a country. Illustrate actual economic growth on Diagram A.
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Quick checks of economic understanding
Which one of the following would be most likely to cause aggregate demand to increase?