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2.3 Economic performance

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Question 73

An economy experiences a contraction in real GDP, a persistent negative output gap, and a reduction in total hours worked that is proportionally greater than the decline in national output.

In these circumstances, which one of the following combinations is most likely to describe the state of this economy?

A

National output: Falling; Cyclical unemployment: Present; Labour productivity: Increasing

B

National output: Falling; Cyclical unemployment: Absent; Labour productivity: Decreasing

C

National output: Rising; Cyclical unemployment: Present; Labour productivity: Increasing

D

National output: Falling; Cyclical unemployment: Present; Labour productivity: Decreasing

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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