Day: July 28, 2019

Which of the following would cause a shift to the right of the aggregate demand curve?

Select ONE answer:

1. a decrease in investment
2. a decrease in the price level
3. an increase in exports
4. an increase in labour productivity

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

1. This will cause a shift to the left of the AD curve.
2. This will cause a movement along the AD curve.
3. Correct: Exports are a component of AD. An increase in exports would shift the AD curve to the right.
4. This would cause a shift to the right of the AS curve.

 

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