Extract C states: 'A sustained expansion of aggregate demand is vital to lift the economy out of stagnation, yet any rapid acceleration in household spending is highly likely to suck in imports of consumer goods and outstrip domestic export capacity, causing a severe deterioration in the trade balance.'
Use the extracts and your knowledge of economics to assess the view that achieving a high rate of economic growth will inevitably conflict with the macroeconomic objective of maintaining a stable balance of payments on the current account.
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.