An economy is currently operating at a point interior to its production possibility frontier (PPF). This state of affairs implies that the economy has
a positive output gap.
a negative output gap.
a high long-run trend rate of growth.
an absolute decline in its factors of production.
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.