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Economics (AS & A Level) · Oct / Nov 2022 · Paper 32 · Question 24

9708Economic growth and sustainability

An economy is experiencing a negative output gap. What is most likely to happen to the inflation rate and unemployment in this economy?

  1. Adecreases / decreases
  2. Bdecreases / increases
  3. Cincreases / decreases
  4. Dincreases / increases

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Correct answer: B. decreases / increases

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