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2.3 Economic performance

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Question 3

Which one of the following changes is most likely to reduce demand-pull inflation in the short run when an economy is operating at full capacity?

A

A depreciation of the domestic exchange rate

B

An increase in the government's budget surplus

C

A reduction in the basic rate of income tax

D

An increase in private sector investment spending

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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