What this practice covers
These questions are drawn from past IB Economics papers and filtered to aggregate demand and aggregate supply. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on aggregate demand and aggregate supply, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Explaining the downward slope of AD using substitution, as if it were a microeconomic demand curve.
- Confusing a movement along AD (caused by the price level) with a shift (caused by a component).
- Counting transfer payments in G, or share purchases in I.
- Shifting LRAS for something that only affects SRAS, a wage rise changes costs, not productive potential.
- Treating the shape of LRAS as settled fact rather than a live disagreement.
- Labelling the axes "price" and "quantity" instead of price level and real output.
- Asserting that higher AD causes inflation without saying where the economy is on the AS curve.
- (HL) Shifting AD by the initial injection rather than the multiplied amount, or forgetting that taxes and imports are leakages too.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Aggregate Demand and Aggregate Supply revision notes.