Figure 1: Annual rate of consumer price inflation (%) in Aldoria, 2018–2023 Figure 2: Unemployment rate (%) in Aldoria, 2018–2023
| Year | Figure 1: Inflation Rate (%) | Figure 2: Unemployment Rate (%) |
|---|---|---|
| 2018 | 1.5 | 6.2 |
| 2019 | 2.1 | 5.5 |
| 2020 | 3.4 | 4.1 |
| 2021 | 4.2 | 3.5 |
| 2022 | 2.8 | 4.8 |
| 2023 | 1.8 | 5.9 |
Explain how the data in Extract B (Figure 1 and Figure 2) show that there may be a short-run trade-off between unemployment and inflation.
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.