CAIE AS Economics - Paper 2
List of past-year essay questions on AD and AS analysis, its components, determinants, curves, shifts, and equilibrium effects on output and employment.
a) With the help of a diagram, explain how increases in aggregate demand affect the level of real output and the price level in an economy and consider when such increases may become a problem. [8]
a) Explain what is meant by aggregate supply and explain one reason why the aggregate supply curve of an economy would shift outwards in (i) the short run, and (ii) the long run. [8]
a) Explain how the factor of production enterprise contributes to aggregate supply in a modern economy and how it differs from the other factors of production in terms of the reward for its services. [8]
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