In Country Y, the underlying trend rate of economic growth is 3.2%. The table below shows the actual rate of growth in real GDP over four successive years.
| Year | Actual percentage growth in real GDP |
|---|---|
| 1 | 2.8% |
| 2 | 1.5% |
| 3 | 0.8% |
| 4 | 1.9% |
Between Year 1 and Year 4, it is most likely that
inflationary pressures increased.
the volume of spare capacity in the economy declined.
the level of unemployment rose.
the economy experienced a technical recession.
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.