WJEC · Macroeconomics · Aggregate supply

WJEC Economics past paper questions: Aggregate supply

Every WJEC question on Aggregate supply from 2017 to 2024: 2 essays, 1 data response question, 1 short answer question and 5 multiple choice questions. It covers Demand, supply and elasticity, Aggregate demand, The economic problem and resource allocation and The labour market. Each question links to its paper, mark scheme and examiner report.

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SubtopicsDemand, supply and elasticity 5Aggregate demand 2The economic problem and resource allocation 1The labour market 1

Essay questions on aggregate supply

A-level Unit 4, June 2019, Q3(a)OptionalExplain10 marks
Explain, using a diagram, the shape of the short run aggregate supply (SRAS) function and the factors which may cause it to shift.

Examiner insight

What to cover
Explain the upward slope, not only the shifts: in the short run some costs such as wages are fixed by contract, so a higher price level raises profit margins and firms expand output. Then give the shift factors, which are changes in the costs of factors of production: wages, oil, taxes, the exchange rate.
Watch out
SRAS shifts when factor costs change, LRAS shifts when the quantity or quality of factors changes. Technology and productivity belong to LRAS unless you link them explicitly to lower factor costs. Do not use micro axes.
Question paper p.3Mark scheme p.14Examiner report p.14Open in the toolDraw it: AD/AS diagram
A-level Unit 4, June 2018, Q3(a)Optional10 marks
Using an appropriate diagram, explain the process by which Neo-classical economists believe that the economy will always adjust to reach long-run equilibrium.

Examiner insight

What to cover
Explain the neo classical belief as well as the mechanism: markets clear because wages and prices are flexible. From a negative output gap, factor costs fall, SRAS shifts right and output returns to the full employment level at a lower price level.
Watch out
Most candidates drew the diagram correctly but did not show understanding of the neo classical view itself, in particular flexible labour and product markets. That is where the extra marks were.
Question paper p.3Mark scheme p.13Examiner report p.14Open in the toolDraw it: AD/AS diagram

Data response questions on aggregate supply

Short answer questions on aggregate supply

Multiple choice questions

  1. AS Unit 1, June 2024, Q14

    Which one of the following correctly describes the shape of the Keynesian long run aggregate supply (LRAS) curve?

  2. AS Unit 1, June 2023, Q15

    The aggregate demand and aggregate supply diagram below represents an economy in equilibrium. Average LRAS price level P AD Real output Y All other things being equal, improvements in technology throughout the economy will most likely lead…

  3. AS Unit 1, June 2022, Q6

    The chart below shows annual net migration to the UK from 1975 to March 2019. Thousands -100 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 (Source: ONS, Long Term…

  4. AS Unit 1, June 2022, Q11

    The aggregate demand and aggregate supply diagram below represents an economy in equilibrium. Average LRAS price level P AD Real output Y The level of savings in the economy decreases. All other things being equal, this will lead to…

  5. AS Unit 1, June 2018, Q2

    Which of the following is least likely to lead to a shift right of the long run aggregate supply curve?

Question text is quoted from the question papers, © WJEC CBAC Ltd, 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.