Extract C states: ‘...restoring robust economic growth remains the primary target for policymakers, yet accelerating domestic demand is likely to test the limits of supply capacity, leading to unavoidable price pressures.’
Use the extracts and your knowledge of economics to assess the view that an increase in the rate of economic growth will inevitably lead to a higher rate of inflation.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.