Economics A-Level
Price level
What Price level means in Economics A-Level, as defined for AQA.
Definitions of Price level
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Reference: AQA
A change in the general price level causes a movement along, rather than a shift of, the aggregate demand and aggregate supply curves.
The general price level, which has an inverse relationship with real GDP illustrated by the downward-sloping AD curve.
The general level of prices that dictates movements along the SRAS curve.
Topics that use Price level
- Aggregate demand and aggregate supply analysis (AQA A-Level)
- Determinants of short-run aggregate supply (AQA A-Level)
- The determinants of aggregate demand (AQA A-Level)
Related terms
- Aggregate demand
- Aggregate demand components
- Aggregate supply
- Circular flow of income
- Cost of production
- Costs of production
- Demand-deficient (cyclical) unemployment
- Economic shocks
Using Price level in the exam
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