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2.3 Economic performance

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Question 24

An economy is experiencing a persistent slowdown in its long-run trend rate of economic growth alongside a significant rise in cyclical unemployment.

Which one of the following policy combinations is likely to be most effective in addressing both of these macroeconomic problems simultaneously?

A

A contractionary monetary policy and a contractionary fiscal policy

B

An expansionary fiscal policy and supply-side policies

C

A contractionary fiscal policy and supply-side policies

D

An expansionary monetary policy and a contractionary fiscal policy

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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