The table below shows the annual percentage change in real GDP for an economy between 2018 and 2021. The estimated long-run trend rate of growth for this economy is 2.5%.
| Year | Change in real GDP (%) |
|---|---|
| 2018 | 1.8 |
| 2019 | 3.2 |
| 2020 | 2.5 |
| 2021 | 1.5 |
Which one of the following statements is most likely to be correct?
In 2018, the economy's negative output gap decreased.
In 2019, the amount of spare capacity in the economy increased.
In 2020, the economy's positive output gap increased.
In 2021, the economy's spare capacity increased.
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.