Which one of the following is the most likely consequence of a widening negative output gap?
A rise in demand-pull inflationary pressure.
An increase in cyclical unemployment.
An increase in the level of private business investment.
A rise in capacity utilization rates.
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.