The Monetary Policy Committee (MPC) of the Bank of England is most likely to raise the base interest rate to prevent a rise in inflation when
there is a persistent widening of a negative output gap.
aggregate demand is growing at a faster rate than the economy's long-run trend rate of non-inflationary growth.
aggregate supply is increasing at a faster rate than aggregate demand.
cyclical unemployment is rising due to a slowdown in global economic activity.
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.