With January 2011 AS macro module exams in mind, here is a streamed revision presentation which examines how AD-AS analysis can be used in an AS macro economics exam
Click here for AS/AD Presentation
The presentation covers shifts in AD and AS curves and also considers some of the demand and supply-side shocks that can affect an economy.
Common applications of AD-AS analysis at AS level include some of the following:
How changes in interest rates affect AD and inflation
How changes in taxation might impact on LRAS
How movements in the exchange rate affect AD & AS
Impact of supply-side policies to stimulate enterprise
Economic consequences of labour migration
Effects of changes in import tariffs and quotas
Multiplier effects from economic stimulus policies
Analysing the impact of the credit crunch / recession
Analysing the causes of higher cost-push inflation
No comments:
Post a Comment