Lesson 2.3.2

2.3.2 Short-run AS Quiz: Pearson Edexcel Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.3.2, Short-run AS: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 2: Theme 2: The UK economy – performance and policies, written with Revision Ninja.

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The 20 questions

  1. Which factor is a direct determinant of short-run aggregate supply?

    • Retirement age
    • Raw material costs
    • Demographic changes
    • Education standards

  2. How does a sharp rise in global oil prices directly affect short-run aggregate supply?

    • Has no effect
    • Shifts left
    • Moves upwards along
    • Shifts right

  3. How does a depreciation of sterling directly affect short-run aggregate supply?

    • Shifts SRAS left
    • Shifts LRAS right
    • Shifts SRAS right
    • Has no effect

  4. What is the direct effect of an increase in employer payroll taxes on SRAS?

    • Shifts LRAS right
    • Shifts SRAS left
    • Shifts SRAS right
    • Shifts AD right

  5. How does a reduction in UK corporation tax rate directly affect short-run aggregate supply?

    • Shifts SRAS left
    • Shifts SRAS right
    • Causes no shift
    • Shifts LRAS left

  6. What impact does a rise in unit labour costs have on short-run aggregate supply?

    • Shifts LRAS right
    • Shifts SRAS right
    • Causes no shift
    • Shifts SRAS left

  7. What economic condition occurs when falling short-run aggregate supply raises inflation while reducing real output?

    • Demand-pull inflation
    • Deflation
    • Stagflation
    • Hyperinflation

  8. Which curve shift causes a fall in real output alongside a rise in the price level?

    • AD shifts right
    • AD shifts left
    • SRAS shifts right
    • SRAS shifts left

  9. What type of inflation is directly caused by firms passing higher production costs onto consumers?

    • Cost-push inflation
    • Asset inflation
    • Demand-pull inflation
    • Deflation

  10. How do rising nominal wages affect SRAS if worker productivity remains unchanged?

    • Causes no shift
    • Shifts SRAS left
    • Shifts LRAS right
    • Shifts SRAS right

  11. What term describes a temporary external event that abruptly shifts short-run aggregate supply?

    • Permanent capacity increase
    • Demand shock
    • Temporary supply shock
    • Structural unemployment

  12. Which change causes a rightward shift of the short-run aggregate supply curve?

    • Higher energy prices
    • Increased wage rates
    • Lower raw material costs
    • Higher indirect taxes

  13. Which change is most likely to cause a rightward shift in the UK SRAS curve?

    • Higher wage rates
    • Weaker pound
    • Higher business taxes
    • Stronger pound

  14. What effect does a reduction in business taxes on production costs have on the SRAS curve?

    • Rightward shift
    • Leftward shift
    • Movement upward along
    • Movement downward along

  15. What effect does a leftward shift in short-run aggregate supply have?

    • Higher output, lower prices
    • Higher output, higher prices
    • Lower output, higher prices
    • Lower output, lower prices

  16. How does an increase in raw material costs affect an economy's SRAS curve?

    • Movement upward along
    • Shifts to left
    • Shifts to right
    • Movement downward along

  17. Which factor directly causes a leftward shift of the SRAS curve?

    • Increased consumer confidence
    • Appreciating exchange rate
    • Lower interest rates
    • Depreciating exchange rate

  18. How does a rise in unit production costs affect a firm's profit margin and short-run supply?

    • Margin rises, supply decreases
    • Margin falls, supply decreases
    • Margin rises, supply increases
    • Margin falls, supply increases

  19. What effect does a fall in global commodity prices have on short-run aggregate supply?

    • SRAS is unchanged
    • SRAS shifts right
    • LRAS shifts right
    • SRAS shifts left

  20. A firm's wage bill rises by 5% with no change in productivity, and wages are its only cost. By how much does its cost per unit rise?

    • 0.5%
    • 10%
    • 5%
    • 50%

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