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.
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.