Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

The table presents real GDP and unemployment for an economy. What conclusion can be drawn from the data?

  • ADemand-pull inflation is likely to increase.
  • BPotential output is likely to increase.
  • CThe balance of payments deficit is likely to increase.
  • DThe budget deficit is likely to increase.

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