AQA Economics past paper questions: How the macroeconomy works (AD/AS)

Essay questions on how the macroeconomy works (AD/AS)

Data response questions on how the macroeconomy works (AD/AS)

Multiple choice questions

1. A-level Paper 3, June 2025, Q4

   Which one of the following diagrams, A, B, C or D, shows the impact on an economy of a permanent reduction in an indirect tax?

2. A-level Paper 3, June 2025, Q10

   Which one of the following best explains the operation of the accelerator process?

3. AS Paper 2, June 2025, Q2

   In an economy, the number of people in work is unchanged but the rate of growth of labour productivity slows from 2.3% to 0.4%. It can be concluded that there will be an increase in

4. AS Paper 2, June 2025, Q4

   Figure 1 shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for an economy. Figure 1 All other things being equal, which one of the following is most likely to cause aggregate demand to shift from AD1 to AD2 and…

5. AS Paper 2, June 2025, Q7

   Table 1 shows the levels of government spending and national income in a country in Year 1 and Year 2. Table 1 Government National income Year spending (£bn) (£bn) 1 1120 2200 2 1250 2500 All other things being equal, what is the value of…

6. AS Paper 2, June 2025, Q8

   Which one of the following is most likely to cause a leftward shift in the short-run aggregate supply curve?

7. AS Paper 2, June 2025, Q10

   Which one of the following combinations consists only of injections into the circular flow of income?

8. AS Paper 2, June 2025, Q13

   Which one of the following is the most likely reason for a fall in saving by households?

9. AS Paper 2, June 2025, Q15

   To reduce the impact of rising inflation, the government cut indirect taxes on several key goods and services and made a one-off payment to all low-income households. Which one of the following diagrams illustrates the most likely impact…

10. AS Paper 2, June 2025, Q19

    According to the accelerator process

11. AS Paper 2, June 2025, Q20

    Which one of the following is most likely to cause a rightward shift in an aggregate demand curve? An increase in

12. A-level Paper 3, June 2024, Q7

    Which one of the following is an injection into the circular flow of income?

13. A-level Paper 3, June 2024, Q23

    Figure 7 shows two long-run aggregate supply curves (LRAS) for an economy. Figure 7 Which one of the following is most likely to explain the shift of the long-run aggregate supply curve from LRAS1 to LRAS2?

14. AS Paper 2, June 2024, Q1

    Which one of the following is a measure of productivity?

15. AS Paper 2, June 2024, Q3

    Table 1 shows selected data for a country for 2022 and 2023. Table 1 2022 2023 Exports ($bn) 10 Government spending ($bn) 12 Investment ($bn) 40 The country’s national income was in equilibrium in 2022 and 2023. All other things being…

16. AS Paper 2, June 2024, Q4

    An aggregate demand and short-run aggregate supply diagram is used to illustrate the effect of a rise in imports of goods and services into an economy. All other things being equal, which one of the following would be shown on the diagram?

17. AS Paper 2, June 2024, Q7

    Which one of the following is most likely to cause a rightward shift of the long-run aggregate supply curve?

18. AS Paper 2, June 2024, Q11

    Which one of the following explains the operation of the accelerator process in an economy?

19. AS Paper 2, June 2024, Q13

    Figure 2 shows the aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves for an economy. Figure 2 All other things being equal, which one of the following is the most likely consequence for…

20. AS Paper 2, June 2024, Q15

    A firm spent £12m on capital goods and its exports increased by £8m. As a result, national income increased by £24m. All other things being equal, what is the value of the multiplier?

21. AS Paper 2, June 2024, Q16

    A government is concerned that aggregate demand is growing faster than the productive capacity of the economy. In addition, the deficit on its balance of payments on current account has worsened. Which one of the following policies is most…

22. A-level Paper 3, June 2023, Q5

    Figure 2 shows the injections into and withdrawals from the circular flow of income of an economy which is in macroeconomic equilibrium. Figure 2 In the economy, net exports are –$50bn. Which one of the combinations, A, B, C or D, shows…

23. A-level Paper 3, June 2023, Q10

    A £2 billion rise in government spending has led to an increase of £5 billion in national income. All other things being equal, what is the value of the marginal propensity to consume?

24. AS Paper 2, June 2023, Q1

    Which one of the following is an injection into the circular flow of income?

25. AS Paper 2, June 2023, Q2

    In which one of the following situations is an increase in aggregate demand most likely to result in higher inflation?

26. AS Paper 2, June 2023, Q4

    A government decides to increase the minimum wage at a time when the rest of the world is coming out of recession. These events cause short-run aggregate supply (SRAS) to shift from SRAS1 to SRAS2 and aggregate demand (AD) to shift from…

27. AS Paper 2, June 2023, Q6

    Table 2 shows the components of a country’s national income in 2021. Table 2 £bn Consumer expenditure Investment Government expenditure Exports Imports It can be concluded from the data in Table 2 that aggregate supply in 2021 must have…

28. AS Paper 2, June 2023, Q19

    Figure 2 shows the aggregate demand curve (AD), short-run aggregate supply curves (SRAS) and long-run aggregate supply curve (LRAS) for an economy. Figure 2 The short-run aggregate supply curve shifts from SRAS1 to SRAS2. Which one of the…

29. A-level Paper 3, June 2022, Q12

    Figure 4 shows the aggregate demand (AD) curve, the short-run aggregate supply (SRAS1 and SRAS2) curves and the long-run aggregate supply (LRAS1 and LRAS2) curves for an economy. Figure 4 All other things being equal, which one of the…

30. A-level Paper 3, June 2022, Q15

    Which one of the following diagrams, A, B, C or D, shows the most likely short-run impact on an economy of an improvement in technology in the production process?

31. AS Paper 2, June 2022, Q2

    Figure 1 shows the aggregate demand (AD) and short-run aggregate supply (SRAS) curves for an economy. Figure 1 Which one of the following combinations of events is most likely to cause the curves to shift from AD1 to AD2 and from SRAS1 to…

32. AS Paper 2, June 2022, Q10

    Faster growth in national income caused investment in an economy to increase. This means that the increase in investment resulted from

33. AS Paper 2, June 2022, Q13

    A small island economy suffers extensive damage from a hurricane. The following diagrams show aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) for the economy. Equilibrium before the hurricane…

34. AS Paper 2, June 2022, Q15

    Table 2 shows the components of aggregate demand in an economy which is in equilibrium. Table 2 £ billion Consumer expenditure 1000 Investment 200 Government expenditure 350 Exports 150 Imports 200 If imports increase to £230 billion and…

35. A-level Paper 3, November 2021, Q12

    Figure 4 shows two aggregate demand (AD1 and AD2) curves and two long-run aggregate supply (LRAS1 and LRAS2) curves for an economy. Figure 4 All other things being equal, which one of the following is the most likely explanation for the…

36. A-level Paper 3, November 2021, Q19

    According to the accelerator process, a slowdown in the rate of growth of national income will lead to a fall in the

37. A-level Paper 3, November 2021, Q30

    Figure 10 shows two aggregate demand (AD1 and AD2) curves and two short-run aggregate supply (SRAS1 and SRAS2) curves for an economy. Figure 10 All other things being equal, which one of the following is the most likely explanation for the…

38. A-level Paper 3, November 2020, Q4

    Figure 1 shows three aggregate demand (AD) curves, a short-run aggregate supply (SRAS) curve and a long-run aggregate supply (LRAS) curve. Figure 1 In Figure 1, when

39. A-level Paper 3, November 2020, Q6

    In an economy, the marginal propensity to consume is 0.6. All other things being equal, which one of the following statements is correct?

40. A-level Paper 3, November 2020, Q26

    Figure 7 shows two aggregate demand (AD1 and AD2) curves and two long-run aggregate supply (LRAS1 and LRAS2) curves for an economy. Figure 7 All other things being equal, which one of the following combinations, A, B, C or D, is most…

41. AS Paper 2, June 2020, Q1

    An economy experiences a positive supply-side shock. Other things remaining equal, the impact on the economy is most likely to be

42. AS Paper 2, June 2020, Q3

    Figure 1 shows aggregate demand (AD) curves for an economy. Figure 1 Which one of the following is most likely to cause the aggregate demand curve to shift from AD1 to AD2?

43. AS Paper 2, June 2020, Q6

    The government invests £1 billion in an extension to the motorway network. As a result, in addition to this initial investment, national income increases by a further £2 billion. What is the value of the multiplier?

44. AS Paper 2, June 2020, Q8

    Figure 2 shows the aggregate demand (AD) curves and short-run aggregate supply (SRAS) curves for an economy. Figure 2 Which one of the following combinations of events is most likely to cause aggregate demand to shift from AD1 to AD2 and…

45. AS Paper 2, June 2020, Q12

    Figure 3 shows an economy’s aggregate demand (AD) and short-run aggregate supply (SRAS) curves. Figure 3 The initial equilibrium price level is at OP1. Which one of the following is most likely to be responsible for both the cost–push and…

46. AS Paper 2, June 2020, Q18

    Figure 5 shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for an economy. Figure 5 Which one of the following policies is most likely to have caused aggregate demand to shift from AD1 to AD2, and long-run…

47. A-level Paper 3, June 2019, Q4

    The diagram below shows the aggregate demand (AD) curve, the long-run aggregate supply (LRAS) curve, and two short-run aggregate supply (SRAS1 and SRAS2) curves for an economy. The economy’s initial equilibrium is at E1. The most likely…

48. A-level Paper 3, June 2019, Q10

    The diagram below shows the aggregate demand (AD) curve, the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve for an economy. The economy’s initial equilibrium is at E1. The government wants to achieve…

49. A-level Paper 3, June 2019, Q25

    The marginal propensity to consume (MPC) in an economy is 0.5. If the MPC increases by 20% the new value of its multiplier will be

50. AS Paper 2, June 2019, Q2

    Economic growth in the US increases from 2% to 5% a year. This is most likely to represent for the UK a

51. AS Paper 2, June 2019, Q6

    The diagram below shows the multiplier effect of an increase in investment that at first causes aggregate demand (AD) to shift from AD0 to AD1 and subsequently to AD2. Which one of the following shows the size of the multiplier effect that…

52. AS Paper 2, June 2019, Q7

    Many firms use profits to finance their capital investment instead of borrowing from banks. For these firms, higher interest rates are most likely to

53. AS Paper 2, June 2019, Q13

    An economy is in macroeconomic equilibrium with total expenditure and total income each equal to £407 billion. This means that the current value of total output will be

54. AS Paper 2, June 2019, Q15

    World oil prices rise by 30%. On an AD/AS diagram the main effects are shown by a shift left in

55. AS Paper 2, June 2019, Q17

    The diagram below shows the aggregate demand curves (AD) and short-run aggregate supply curves (SRAS) for an economy. Which one of the following combinations of events is most likely to have caused the shift from AD1 to AD2 and the shift…

56. A-level Paper 3, June 2018, Q4

    All other things being equal, an increase in the ratio of capital to labour resulting from an increase in investment is most likely to lead to a

57. A-level Paper 3, June 2018, Q12

    The diagram below shows two aggregate demand (AD) curves and the short-run aggregate supply (SRAS) curve for an economy. All other things being equal, the change in real national output from Y1 to Y2 is most likely to have been caused by…

58. A-level Paper 3, June 2018, Q13

    An economy is in a state of macroeconomic equilibrium. The levels of investment, savings, exports and imports are shown below. Injections into and withdrawals from the circular flow of income Investment £200 bn Savings £200 bn Exports £300…

59. A-level Paper 3, June 2018, Q18

    The diagram below shows two long-run aggregate supply (LRAS) and two short-run aggregate supply (SRAS) curves for an economy. All other things being equal, which one of the following is most likely to explain the movement to the right of…

60. AS Paper 2, June 2018, Q2

    The following table shows the planned changes to injections into and withdrawals from the circular flow of income for one year. £bn Exports Government expenditure Imports Investment Savings Taxation Other things remaining the same, these…

61. AS Paper 2, June 2018, Q6

    Which one of the following best describes the action of the accelerator theory of investment?

62. AS Paper 2, June 2018, Q8

    Which one of the following is the best definition of a household’s total saving?

63. AS Paper 2, June 2018, Q10

    In the diagram below, an economy is initially in equilibrium at point G. Aggregate demand then shifts from AD1 to AD2 and the short-run aggregate supply curve shifts from SRAS1 to SRAS2. Which one of the following combinations of events…

64. AS Paper 2, June 2018, Q15

    An economy that imports most of its energy experiences a large appreciation in its exchange rate. Which one of the following AD/AS diagrams best illustrates the resulting changes to the economy’s price level and real national output?

65. AS Paper 2, June 2018, Q19

    The world market price of oil falls by 40 per cent. Other things remaining the same, the impact on the UK economy is most likely to be

66. A-level Paper 3, June 2017, Q16

    Assuming that the value of the marginal propensity to consume is 0.6, which of the following changes in national income would result from an increase in exports of £19bn?

67. A-level Paper 3, June 2017, Q18

    The diagram below depicts an aggregate demand (AD) curve and two long-run aggregate supply (LRAS) curves for an economy. The economy’s initial equilibrium is at E1. All other things being equal, the movement of the economy from its initial…

68. A-level Paper 3, June 2017, Q28

    The diagram below shows the aggregate demand (AD) and two short-run aggregate supply (SRAS) curves for an economy. All other things being equal, which one of the following is most likely to cause the short-run aggregate supply curve to…

69. AS Paper 2, June 2017, Q1

    In the circular flow of income model, which one of the following is an injection?

70. AS Paper 2, June 2017, Q2

    The diagrams below show the aggregate demand (AD) and short run aggregate supply (SRAS) curves for an economy. AD1 and SRAS1 show the initial positions of the curves and AD2 and SRAS2 the new positions. Which one of the following diagrams…

71. AS Paper 2, June 2017, Q4

    The table below shows the components of gross domestic product (GDP) for an economy in 2016. £bn Consumption 850 Imports 210 Government expenditure 300 Investment 180 Exports 230 Aggregate demand in the economy is

72. AS Paper 2, June 2017, Q9

    Which one of the following represents investment expenditure?

73. AS Paper 2, June 2017, Q10

    The diagram below shows the initial short run aggregate supply curve (SRAS1) and long run aggregate supply curve (LRAS1) for an economy. SRAS2 and LRAS2 are the new positions of the two aggregate supply curves. The most likely combination…

74. AS Paper 2, June 2017, Q12

    In an economy, the government reduced its spending by £4bn at the same time as exports rose by £20bn. As a result of these changes, national income rose by £20bn. The size of the multiplier is

75. AS Paper 2, June 2016, Q2

    The diagram below shows two aggregate demand curves (AD) for an economy. All other things being equal, the most likely cause of the shift from AD1 to AD2 is an increase in

76. AS Paper 2, June 2016, Q3

    All other things being equal, the long-run aggregate supply curve of an economy is likely to shift to the right if there is an increase in

77. AS Paper 2, June 2016, Q5

    The diagram below shows two aggregate demand curves (AD) and the short-run aggregate supply curve (SRAS) for an economy. All other things being equal, which one of the following is the most likely cause of the movement of the economy from…

78. AS Paper 2, June 2016, Q10

    An economy is in macroeconomic equilibrium, producing at its normal capacity level of output. Without long-run economic growth, a persistent increase in aggregate demand is likely to lead to an increase in the level of

79. AS Paper 2, June 2016, Q12

    The table below shows different sets of changes taking place in an economy. All other things being equal, which one of the following combinations, A, B, C or D, is most likely to have the effect of shifting the short-run aggregate supply…

80. AS Paper 2, June 2016, Q19

    In the circular flow of income model, which one of the following equations is correct?

81. AS Paper 2, June 2016, Q20

    The diagram below shows two aggregate demand curves (AD) and two long-run aggregate supply curves (LRAS) for an economy. The economy’s initial equilibrium point is at E1. All other things being equal, which one of the following…

82. A-level Paper 3, Specimen, Q8

    The four diagrams below show aggregate demand (AD) and short-run aggregate supply (SRAS) curves for the UK economy. All other things being equal, which one of the diagrams A, B, C or D shows the most likely effects of an increase in raw…

83. A-level Paper 3, Specimen, Q9

    All other things being equal, a rise in which one of the following would shift an economy’s short-run aggregate supply curve to the left?

84. A-level Paper 3, Specimen, Q15

    The diagram below shows aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves for the UK economy. Initial aggregate demand is AD 1 . The shift of the aggregate demand curve to AD 2 is the…

85. A-level Paper 3, Specimen, Q19

    An injection into an economy, with a marginal propensity to consume of 0.8, leads to a total increase in national income of £350 million. What was the value of the initial injection?

86. AS Paper 2, Specimen, Q5

    The diagram below shows two aggregate demand (AD) curves and the short-run aggregate supply (SRAS) curve for an economy. All other things being equal, a fall in the price level from P 1 to P 2 could be explained by a fall in

87. AS Paper 2, Specimen, Q6

    Which one of the following would be regarded as a supply-side shock for the UK economy?

88. AS Paper 2, Specimen, Q7

    The diagram below shows the aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves for an economy. The economy’s initial equilibrium is at point E. Which one of the following developments…

89. AS Paper 2, Specimen, Q13

    The diagram below shows an economy’s aggregate demand (AD) and long run aggregate supply (LRAS) curves. OY 1 is the initial equilibrium level of real output. Which one of the following combination of events is likely to lead to a new…

90. AS Paper 2, Specimen, Q14

    The accelerator principle illustrates the relationship between investment and the rate of change of

91. AS Paper 2, Specimen, Q15

    The diagrams below show aggregate demand (AD) and short-run aggregate supply (SRAS) curves for the UK. All other things being equal, which one of the diagrams, A, B, C or D, shows the most likely effects of an increase in government…

92. AS Paper 2, Specimen, Q17

    The table below shows values (£billion) for components of aggregate demand (AD) in an economy: Components of AD (£billion) Consumption 500 Investment Government spending 250 Exports ? Imports Aggregate demand 825 What is the value of…