Table 1: Consumer price index (CPI) annual inflation rate (%) and the unemployment rate (%) in Baltia, 2016–2021
| Year | CPI Inflation Rate (%) | Unemployment Rate (%) |
|---|---|---|
| 2016 | 1.2 | 7.4 |
| 2017 | 1.9 | 6.1 |
| 2018 | 2.8 | 5.2 |
| 2019 | 4.5 | 3.8 |
| 2020 | 3.1 | 4.9 |
| 2021 | 1.5 | 6.8 |
Explain how the data in Table 1 shows that there may be a short-run trade-off between Baltia's macroeconomic policy objectives for inflation and unemployment.
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.