Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 28

The diagram shows aggregate demand (AD) and aggregate supply in the short run (SRAS) and the long run (LRAS). Which row is correct in causing a shift in the short run aggregate supply from SRAS to SRAS1 and the long run aggregate supply from LRAS to LRAS1?

1. Achange in AD from W to Y | increase in population
2. Bdecrease in raw material costs | improvements in the education of workers
3. Cdecrease in wage rates | decrease in immigration
4. Dincrease in availability of labour | increase in labour productivity

As printed in the paper