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CAIE A-Level Economics A2 9.2.2 Output Gaps Questions

Practise interpreting positive and negative output gaps and predicting effects on growth, prices, unemployment and spare capacity.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Interpret positive and negative output gaps and evaluate their effects on growth, prices, unemployment and spare capacity.

CAIE A-Level Economics A2 9.2.2 Output Gaps Questions question 1

[Maximum number: 1]

The table shows real GDP and unemployment for an economy.

Table for Question CAIE A-Level Economics A2 9.2.2 Output Gaps Questions question 1 — CAIE A-Level Economics A2

What can be concluded from the data?

A

Demand-pull inflation is likely to increase.

B

Potential output is likely to increase.

C

The balance of payments deficit is likely to increase.

D

The budget deficit is likely to increase.

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