The table below shows the annual percentage change in real GDP for an economy between 2021 and 2024. The estimated long-run trend rate of economic growth for this country is 2.2%.
| Year | Change in real GDP (%) |
|---|---|
| 2021 | 2.8 |
| 2022 | 1.4 |
| 2023 | 2.2 |
| 2024 | 3.0 |
Which one of the following statements is most likely to be correct?
In 2021, the economy's spare capacity increased.
In 2022, the economy's negative output gap increased.
In 2023, the amount of spare capacity in the economy decreased.
In 2024, the economy's positive output gap decreased.
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.