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2.3 Economic performance

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Question 28

An economy is currently operating inside its production possibility frontier (PPF). If the rate of growth of aggregate demand is positive but lower than the rate of growth of the economy's productive capacity, then the economy is most likely to experience

a widening of the negative output gap.

a decline in actual national output.

an increase in the rate of inflation.

a rise in the trend rate of economic growth.

2.3 Economic performance Questions

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  3. /2.3 Economic performance