Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Under which combination of conditions would an economy probably see inflation decline while unemployment also falls at the same time?

  • Aunemployment above the natural rate; actual growth rate in output above long-term trend rate of growth
  • Bunemployment above the natural rate; actual growth rate in output below long-term trend rate of growth
  • Cunemployment below the natural rate; actual growth rate in output above long-term trend rate of growth
  • Dunemployment below the natural rate; actual growth rate in output below long-term trend rate of growth

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