AD/AS appears constantly in IB Economics revision because it gives you a flexible way to explain growth, inflation, unemployment, and supply-side policy. In Paper 2, the mark is usually in the connection between the diagram and the case-study economy.
How to draw the AD/AS diagram
- Put real output on the horizontal axis
- Put the price level on the vertical axis
- Draw AD, SRAS, and LRAS
- Shift the correct curve and label the new equilibrium
Animated draw order
Student memory line: Exports up -> AD right -> Y up (+ PL up)
IB Economics AD/AS diagram: AD shifts right, real GDP rises, and price-level effects can be explained for Paper 2 marks.
Common Paper 2 example
Education raises productivity
Better education raises labour productivity, shifting LRAS right. Over time that supports non-inflationary growth, which is often a stronger evaluation point than simply saying GDP rises.
How to use it in the exam
Pair the diagram with a short explanation of short-run and long-run effects. That is where many IB Econ answers become more evaluative.
See the Bhutan walkthrough for a full development-style example.
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