Which one of the following changes in macroeconomic performance is most likely to demonstrate a short-run trade-off between different government policy objectives?
An increase in economic growth that is accompanied by a widening deficit on the current account of the balance of payments.
A decrease in the rate of inflation that occurs alongside an improvement in the government's fiscal balance.
An increase in labor productivity that leads to a rise in international competitiveness.
A reduction in the rate of unemployment achieved alongside a falling rate of 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.