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2.3 Economic performance

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Question 59

An increase in aggregate demand is most likely to lead to demand-pull inflation when:

A

there is a significant amount of spare capacity in the economy.

B

the economy is operating on the vertical portion of its long-run aggregate supply curve.

C

the government is successfully achieving its target of a balanced budget.

D

the marginal propensity to import is high.

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.

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