Economics A-Level
Economic capacity
What Economic capacity means in Economics A-Level, as defined for AQA.
Definition of Economic capacity
Check what you remember
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Reference: AQA
The productive capacity of the economy, which fiscal policy can increase by shifting the Long-Run Aggregate Supply curve to the right.
Topics that use Economic capacity
- Fiscal policy (AQA A-Level)
Related terms
- Aggregate demand and supply
- Aggregate supply
- Automatic stabilisers
- Budget balance
- Budget deficit
- Budget surplus
- Crowding out
- Direct taxes
Using Economic capacity in the exam
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