The diagram shows aggregate demand (AD) and aggregate supply (AS) in an economy. The initial equilibrium is at point E. What causes shifts in the aggregate supply curve from AS to AS₁ and from AS to AS2?
✓ Correct Answer
The correct answer is D: shift from AS to AS1: shortages of skilled labour, shift from AS to AS2: improvements in training of workforce
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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