Skip to content

Course home

Sign up

2.3 Economic performance

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112
Question 52

An economy is currently experiencing high inflationary pressures. Which combination of macroeconomic changes is most likely to lead to a reduction in the rate of inflation?

Value of the domestic currencyCentral bank base interest rateLabor productivity
AAppreciatesRisesRises
BDepreciatesRisesRises
CAppreciatesFallsFalls
DDepreciatesFallsFalls
A

Value of currency: Appreciates; Interest rate: Rises; Labor productivity: Rises

B

Value of currency: Depreciates; Interest rate: Rises; Labor productivity: Rises

C

Value of currency: Appreciates; Interest rate: Falls; Labor productivity: Falls

D

Value of currency: Depreciates; Interest rate: Falls; Labor productivity: Falls

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