Unit 3: Macroeconomics

Topic 3.2: Variations in Economic Activity — Aggregate Demand and Aggregate Supply Questions

Practice 20 exam-style questions for IB Economics Topic 3.2. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

11 mark
Aggregate demand (AD) is defined as:
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21 mark
Macroeconomic equilibrium occurs where:
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34 marks
Explain the components of aggregate demand.
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41 mark
Macroeconomic equilibrium occurs where:
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51 mark
Aggregate demand (AD) is defined as:
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64 marks
Explain the components of aggregate demand.
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71 mark
The short-run aggregate supply (SRAS) curve is upward sloping because:
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81 mark
The aggregate demand curve slopes downward because:
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94 marks
Using an AD-AS diagram, explain how a positive demand-side shock affects the economy in the short run.
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104 marks
Explain two factors that could cause the SRAS curve to shift to the left.
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111 mark
Which of the following would cause a rightward shift of the AD curve?
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124 marks
Explain two factors that could cause the AD curve to shift to the right.
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131 mark
A positive demand-side shock, such as a large increase in consumer spending, would most likely result in:
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141 mark
Stagflation is characterised by:
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154 marks
Explain the difference between an inflationary gap and a deflationary (recessionary) gap.
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161 mark
Which of the following would shift the SRAS curve to the left?
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174 marks
Explain the difference between an inflationary gap and a deflationary (recessionary) gap.
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181 mark
The long-run aggregate supply (LRAS) curve is vertical because:
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191 mark
A rightward shift of the LRAS curve would result from:
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204 marks
Explain how a negative supply-side shock can cause stagflation.
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