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2.3 Economic performance

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Question 125

A government wants to reduce a persistent deficit on the current account of the balance of payments but, in the short run, this is likely to conflict with some of its other macroeconomic policy objectives.

Which one of the following is most likely to deteriorate in the short run as a result of contractionary fiscal policy being used to reduce the current account deficit?

A

The rate of economic growth

B

International competitiveness

C

The government budget balance

D

The rate of inflation

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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