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2.3 Economic performance

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Question 82

All other things being equal, an economy is most likely to experience demand-pull inflation if

A

the government increases direct tax rates during an economic downturn.

B

aggregate demand increases when the economy has no spare capacity.

C

the national currency appreciates while global commodity prices fall.

D

labour productivity grows at a faster rate than average nominal wages.

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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