An economy experiences a widening positive output gap. Which one of the following combinations of macro-economic outcomes describes the most likely effects of this trend?
Imports: Rising | Inflationary pressure: Rising | Unemployment: Falling
Imports: Falling | Inflationary pressure: Rising | Unemployment: Rising
Imports: Rising | Inflationary pressure: Falling | Unemployment: Falling
Imports: Falling | Inflationary pressure: Falling | Unemployment: Rising
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.