An economy is currently operating below its potential trend rate of growth while simultaneously experiencing inflation and a current account deficit on its balance of payments. All other things being equal, a significant increase in government spending on welfare benefits is most likely to lead to a decrease in the
current account deficit.
rate of inflation.
rate of unemployment.
rate of real economic growth.
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.