Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 20
9708Aggregate Demand and Aggregate Supply analysis
What may prevent a government achieving a faster rate of growth of real GDP?
- AThe multiplier has a small value.
- BThe consumer price index is below its target set by the central bank.
- CThe economy is operating on the vertical section of the long-run aggregate supply curve.
- DThere is a large negative output gap in the economy.
As printed in the paper
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Correct answer: C. The economy is operating on the vertical section of the long-run aggregate supply curve.
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