Table 1 shows four economies. The central bank wants to reduce inflation but is also concerned about unemployment.
| Economy | Inflation rate | Unemployment rate | Growth rate |
|---|---|---|---|
| A | 7.0% | 3.0% | 4.0% |
| B | 2.0% | 3.5% | 3.0% |
| C | 1.5% | 8.0% | -1.0% |
| D | 6.5% | 9.0% | 0.0% |
In which economy is a rise in interest rates likely to involve the greatest conflict between these objectives?
Economy A
Economy B
Economy C
Economy D
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.