Consider the diagram below. Which of the following statements is incorrect? (3 marks) Full-capacity output Trend output

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Consider The Diagram Below Which Of The Following Statements Is Incorrect 3 Marks Full Capacity Output Trend Output 1 (57.51 KiB) Viewed 86 times

Consider the diagram below. Which of the following statements is incorrect? (3 marks) Full-capacity output Trend output National output (GDP) 3 Actual output Time (a) In phase 1, economic growth would be slowing or flat, inflation would be at its lowest point, unemployment would be at its highest point and the country's goods and services would be at their most competitive. (b) In phase 3, economic growth would be slowing or flat, inflation would be at its highest point, unemployment would be at its lowest point and the UK's goods and services would be at their least competitive. (c) There may be inefficiency in using economic resources, so the actual output is always lower than the trend output. (d) The more unused economic resources, the further away is the actual output from the full-capacity output.