Long-run aggregate supply

Q2(a) Pick the diagram that shows higher net exports under the Keynesian long-run aggregate supply curve.

Q2(b) Explain where real output ends up in the long run when aggregate demand rises, working on a classical long-run aggregate supply curve.

Q4(a) Explain one likely impact on UK aggregate supply of the High Speed 2 rail link (context: a £56bn project connecting London to Manchester and Leeds, cutting journey times by up to 50%).

Q2(a) Draw on the diagram provided the shape taken by a Classical long-run aggregate supply (LRAS) curve.

Q2(b) Explain why a Classical long-run AS curve takes the shape that it does.

Q5(a) Use an AD/AS diagram to show how the $18.8bn Hong Kong–Zhuhai–Macau sea bridge would move the regional price level and real output.

Q2(a) Draw, on the axes supplied, how a Keynesian long-run aggregate supply curve is shaped.

Q2(b) Clarify what economists mean when they say an economy holds spare capacity.

Q4(c) Identify what would most plausibly raise long-run aggregate supply (less investment / better relative productivity / more generous benefits / tighter credit).