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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why can Short Run Economic Growth [Via AD] lead to Conflict between the 4 Macroeconomic Performance Indicators

Author: eric_galvao



Answer:

-Output will Increase, meaning Economic Growth and Unemployment Levels Tank [Labour is Derived] -But it will cause Prices to Increase meaning Inflation, and Exports will be Expensive so it will Fall. Imports may Rise due to Meet the Extra Output so the Balance of Payments may be Sour as well


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