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2 questions on Determinants of Short-Run Aggregate Supply (AQA specification 2.2.5) from the A-Level Economics papers, 2023–2024. Every question links to the official mark scheme at the page its answer begins on.
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Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound…’ With the help of a diagram, explain how a depreciation of the pound may cause inflation.
Explain the possible causes of a shift in the short-run aggregate supply curve to the left.
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