Skip to content

Course home

Sign up

2.3 Economic performance

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131132133134135
Question 8

A government attempts to stimulate economic recovery by increasing aggregate demand (AD). All other things being equal, in the short run, which one of the following combinations is most likely to result from this expansion of AD?

A

Inflation rate: Decreases; Level of unemployment: Increases; Balance of payments on current account: Improves

B

Inflation rate: Increases; Level of unemployment: Decreases; Balance of payments on current account: Worsens

C

Inflation rate: Increases; Level of unemployment: Decreases; Balance of payments on current account: Improves

D

Inflation rate: Decreases; Level of unemployment: Increases; Balance of payments on current account: Worsens

Markscheme

2.3 Economic performance Questions

  1. A Level
  2. /Economics
  3. /2.3 Economic performance

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.

Question bank