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2.3 Economic performance

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Question 90

An economy, operating close to its full employment level of output, exports and imports consumer goods. It also relies heavily on imported energy and raw materials to supply its domestic manufacturing sector.

All other things being equal, an appreciation of the domestic currency's exchange rate is likely to:

A

reduce both demand-pull and cost-push inflationary pressures.

B

reduce demand-pull inflationary pressures but increase cost-push inflationary pressures.

C

increase demand-pull inflationary pressures but reduce cost-push inflationary pressures.

D

increase both demand-pull and cost-push inflationary pressures.

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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