Cambridge International (CAIE) · 4 The macroeconomy (AS) · 4.3 Aggregate demand and aggregate supply analysis

Cambridge International (CAIE) Economics past paper questions: Aggregate demand and aggregate supply analysis

Every Cambridge International (CAIE) question on Aggregate demand and aggregate supply analysis from 2023 to 2025: 2 essays and 18 multiple choice questions. It covers 2.1 Demand and supply curves, 4.6 Price stability, 6.4 Exchange rates, 4.1 National income statistics and 5.2 Fiscal policy. Each question links to its paper, mark scheme and examiner report.

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Subtopics2.1 Demand and supply curves 44.6 Price stability 26.4 Exchange rates 24.1 National income statistics 15.2 Fiscal policy 13.2 Methods and effects of government intervention in markets 15.3 Monetary policy 1

Essay questions on aggregate demand and aggregate supply analysis

Multiple choice questions

  1. AS Paper 1, November 2025, Q16

    The diagram shows the AD and AS curves for a country. The equilibrium level of national income is Y1 and the general price level is P1. What is the most likely effect on employment and the general price level of a small decrease in…

  2. AS Paper 1, November 2025, Q17

    The diagram shows aggregate demand and aggregate supply curves for an economy. What would cause a change in the aggregate demand from AD to AD1?

  3. AS Paper 1, November 2025, Q22

    What is the effect of an increase in the money supply on the interest rate and the aggregate demand (AD) curve?

  4. AS Paper 1, November 2025, Q28

    Between June and the end of July 2016, the UK pound sterling depreciated by 11% against a basket of currencies of the UK’s major trading partners. The diagram shows the original aggregate demand curve AD1 and the original aggregate supply…

  5. AS Paper 1, June 2025, Q18

    The aggregate demand curve is typically downward sloping. What is one possible explanation for this?

  6. AS Paper 1, June 2025, Q25

    The diagram shows aggregate demand (AD) and aggregate supply (AS) curves. The initial equilibrium is at X. A government decides to invest in an increase in infrastructure. What will be the short-term effect of this policy on the…

  7. AS Paper 1, March 2025, Q18

    The diagram shows aggregate demand (AD) and long-run aggregate supply (LRAS) with X as the initial equilibrium. Which combination of policy and new final equilibrium point is correct?

  8. AS Paper 1, November 2024, Q17

    What is likely to move an economy’s aggregate demand curve to the right?

  9. AS Paper 1, November 2024, Q22

    An economy is in equilibrium at point E on the diagram. The government reduces its expenditure on defence. Which point on the diagram shows the new equilibrium?

  10. AS Paper 1, June 2024, Q15

    Which government policy will increase aggregate demand?

  11. AS Paper 1, March 2024, Q19

    Aggregate demand in an economy may decrease as a result of an increase in

  12. AS Paper 1, March 2024, Q22

    The diagram shows aggregate demand (AD) curves for an economy. Which combination is most likely to have caused the shift from AD1 to AD2?

  13. AS Paper 1, November 2023, Q24

    A government increases the rate of income tax. What is the effect, in the short run, on the aggregate demand curve or the aggregate supply curve?

  14. AS Paper 1, November 2023, Q29

    A government wants to reduce inflation. It has decided to cut government spending by $1bn. The diagram shows different starting positions for the country’s aggregate demand (AD) curve. Which starting position for the aggregate demand curve…

  15. AS Paper 1, November 2023, Q30

    A government reduces the rate of tax firms are charged on their land and buildings. How is this likely to affect the economy’s price level and real output?

  16. AS Paper 1, June 2023, Q18

    Which change is shown directly by the use of aggregate demand and aggregate supply analysis?

  17. AS Paper 1, June 2023, Q19

    Why might aggregate demand increase when a country’s price level falls?

  18. AS Paper 1, March 2023, Q21

    The diagram shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for a country. X is the original equilibrium position. In one year, over one million foreign workers left the country and at the same time the…

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.