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A-Level Aggregate Demand and Aggregate Supply

What the A-Level syllabus expects for Aggregate Demand and Aggregate Supply, and how to practise it.

What the syllabus expects

Aggregate Demand (AD) and its building blocks: net exports (X – M), government spending (G), then investment (I) and consumption (C).
AD moves whenever the drivers behind (X – M), plus G, I and C, happen to shift.
How Aggregate Supply (AS) responds to changes in its determinants.
How AD and AS interacting together settle the equilibrium level of national output and the general price level.
How a change in an AD component can bring about a multiplied change in national income.
Scope: Distinguishing autonomous expenditure from induced expenditure is expected. Knowledge of the marginal propensities (to consume, save, tax and import) and of the multiplier formula is expected.