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2.3 Economic performance

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Question 66

The central bank of an economy implements an expansionary monetary policy, lowering the base interest rate. In the short run, such a policy is likely to result in a conflict between which of the following macroeconomic objectives?

A

Increasing economic growth and reducing unemployment.

B

Preventing deflation and reducing the surplus on the current account of the balance of payments.

C

Maintaining price stability (low inflation) and reducing unemployment.

D

Reducing the deficit on the current account of the balance of payments and increasing economic growth.

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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