IB skill practice

Analyse aggregate demand and aggregate supply

Economics SL macroeconomics skill with original exam-style diagram, data-response, and policy-evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 3

Analyse an increase in aggregate demand

A New Zealand inflation report reports stronger household consumption and investment. Use an AD-AS diagram to explain the likely short-run effect. Use the labelled macro diagram, data, or extract evidence before writing the answer. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.