Lesson M1.3.1

M1.3.1 Aggregate supply in the short run and long run Quiz: OCR Economics, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson M1.3.1, Aggregate supply in the short run and long run: 20 multiple choice questions for the OCR Economics (H460), Unit 6: Aggregate demand and aggregate supply, written with Revision Ninja.

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The 20 questions

  1. What two variables are plotted on the axes of an aggregate supply diagram?

    • Money supply, debt
    • Price level, output
    • Interest rate, output
    • Export, import levels

  2. Which of the following is assumed to be constant along a single SRAS curve?

    • General price level
    • Aggregate demand level
    • Money wage rates
    • Real national output

  3. What shape is the Classical long-run aggregate supply curve?

    • Vertical
    • Horizontal
    • Downward-sloping
    • Upward-sloping

  4. In Keynesian macroeconomic theory, why can the LRAS curve be horizontal?

    • Full employment output
    • Rising wage rates
    • High inflation expectations
    • Unused spare capacity

  5. How does a sudden spike in world oil prices affect the SRAS curve?

    • Shifts right
    • Moves down along
    • Shifts left
    • Moves up along

  6. Which curve shifts right when there is a sustained rise in national labour productivity?

    • SRAS and LRAS
    • Neither curve
    • SRAS only
    • AD only

  7. What causes a movement along the short-run aggregate supply curve?

    • Raw material costs
    • Business tax changes
    • Wage rate changes
    • Price level changes

  8. A cut in business regulation costs causes which shift in the short run?

    • Rightward SRAS shift
    • Leftward LRAS shift
    • Rightward AD shift
    • Leftward SRAS shift

  9. A depreciation of the exchange rate increases import costs. How does SRAS react?

    • Shifts right
    • Expands upwards
    • Remains unchanged
    • Shifts left

  10. What level of output does a vertical classical LRAS curve represent?

    • Zero inflation output
    • Full employment output
    • Minimum wage output
    • Maximum import output

  11. What factor distinguishes the long run from the short run in supply analysis?

    • Fixed technology levels
    • Constant price levels
    • Fixed real GDP
    • Flexible factor prices

  12. An increase in the rate of Value Added Tax on goods causes SRAS to:

    • Contract downwards
    • Shift left
    • Expand upwards
    • Shift right

  13. In the Keynesian LRAS model, what happens as output approaches full employment?

    • Costs fall sharply
    • Unemployment rises sharply
    • Output becomes infinite
    • Costs rise sharply

  14. Which change will increase both short-run and long-run aggregate supply simultaneously?

    • Technological innovation
    • A wage increase
    • A temporary subsidy
    • Higher import tariffs

  15. A rightward shift of the long-run aggregate supply curve represents an increase in what?

    • Productive potential
    • Current account deficit
    • Cyclical unemployment
    • Demand-pull inflation

  16. Why does the short-run aggregate supply curve slope upwards?

    • Higher profit margins
    • Constant price levels
    • Decreasing product demand
    • Falling production costs

  17. Government investment in new transport infrastructure causes LRAS to shift in which direction?

    • To the right
    • Downwards along curve
    • To the left
    • Upwards along curve

  18. In classical theory, what is the long-run result of a rightward shift in AD?

    • Higher real output
    • Higher price level
    • Lower interest rates
    • Lower price level

  19. How does a general increase in money wage rates affect the short-run aggregate supply curve?

    • Movement downwards
    • Shifts left
    • Shifts right
    • No change

  20. In Classical economic theory, what determines the position of the long-run aggregate supply curve?

    • Price level
    • Aggregate demand
    • Productive capacity
    • Interest rates

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