Edexcel A-Level Economics AS 2.3.5 4b Distinction Between Positive and Negative Output Gaps Questions
Use Edexcel IAL Economics 2.3.5.4b questions to compare actual and trend growth, identify gap direction and interpret the implied output position.
Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS
Exam points
identify a negative output gap when actual growth falls below trend in a diagram or table
identify a positive output gap from actual-versus-trend growth curves
Edexcel A-Level Economics AS 2.3.5 4b Distinction Between Positive and Negative Output Gaps Questions question 1
[Maximum number: 1]
The table shows the annual percentage change in the real GDP of Canada between 2017 and 2019. The long-term trend rate of economic growth for the economy is estimated to be 2.7%.
Which one of the following can be deduced from the table?
A
The positive output gap increased between 2017 and 2018
B
There was a negative output gap in 2018 and 2019
C
There was a positive output gap in 2018 and 2019
D
The negative output gap decreased between 2018 and 2019