An economy is experiencing a rapid export-led expansion, moving its actual output close to its productive potential.
Which combination of changes is most likely to prevent this expansion from causing a high rate of inflation?
A rise in domestic interest rates and rising labour productivity
A rise in domestic interest rates and falling labour productivity
A fall in domestic interest rates and rising labour productivity
A fall in domestic interest rates and falling labour productivity
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.