During a period of falling unemployment, an economy experiences a decrease in labor productivity while real household disposable income rises.
All other things being equal, which combination is most likely to result from these changes?
| The rate of inflation | The balance of payments deficit on current account | |
|---|---|---|
| A | Decreases | Decreases |
| B | Increases | Decreases |
| C | Decreases | Increases |
| D | Increases | Increases |
Combination A
Combination B
Combination C
Combination D
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.