In which one of the following situations is an economy experiencing a positive output gap?
The growth rate of real GDP is lower than the annual rate of inflation.
The economy is operating with a high level of spare capacity and underemployed resources.
Actual real GDP is greater than the economy's estimated long-run trend level of output.
National trade deficits are growing faster than the rate of domestic private saving.
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.