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2.3 Economic performance

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Question 77

An economy experiences a sluggish but positive rate of economic growth, a persistent negative output gap, and a rise in total hours worked that exceeds the rate of growth of national output.

In these circumstances, which one of the following combinations of events is most likely to occur?

A

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

B

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

C

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

D

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

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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