An economy is currently operating with a negative output gap. In the short run, if actual aggregate demand grows at a slower rate than the rate of growth of the economy's potential output, which of the following is most likely to occur?
A decrease in the level of real output
An increase in the level of unemployment
A reduction in the trend rate of economic growth
An increase in demand-pull inflationary pressure
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.