Mick

Question 1

AD increases econ growth

Answer 1

Firms greater inventive to increase prod goods to match demand, more output do increase in real gdp

Question 2

Econ growth link to unemployment

Answer 2

As econ growth increases, unemployment falls - due to labour being derived demand

Greater demand for goods and services , greater demand for labour to increase

Question 3

AD effect on inflation

Answer 3

More pressure put on existing factors of economy , so prices increases
Eg - labour - workers demand higher wages
Increases costs, upward pressure on price which increase inflation

Question 4

Inflation link to exports

Answer 4

Inflation increases exports in ecocnont less competitive so demand falls
Reducing exports in economy and worsening trade position

Question 5

AS effect on LRAS

Answer 5

More remand goods and services
Extension of AD
Firms increase output

Question 6

LRAS effect on inflation

Answer 6

Reduced due to less competition for goods and services
Reduced cost pish infkationayr pressure

Makes trade position improve

Question 7

Evaluation points for AD and AS

Answer 7

Depends on initial level econ activity

AD- size of multiplier , extent of chnage