Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 18

A country with a constant population experiences a 5% increase in its nominal GDP during a year. In which situation will average living standards be most likely to have increased during the year?

1. Aif government takes action to ensure there is no increase in unemployment
2. Bif inflation during the year is 3%
3. Cif there is no increase in real national income
4. Dif there is no redistribution of income

As printed in the paper