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2.3 Economic performance

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Question 75

Table 1 shows different combinations of trends for three macroeconomic indicators.

Table 1

CombinationSpare capacityRate of inflationGovernment budget deficit
AIncreasingDecreasingIncreasing
BDecreasingDecreasingIncreasing
CDecreasingIncreasingDecreasing
DIncreasingIncreasingDecreasing

Which one of the combinations, A, B, C or D, is most likely to indicate an economy experiencing a rapid economic expansion heading towards a boom?

A

Combination A\text{Combination A}Combination A

B

Combination B\text{Combination B}Combination B

C

Combination C\text{Combination C}Combination C

D

Combination D\text{Combination D}Combination D

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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