Economic Growth
24 questions· page 1 of 3
With the help of an aggregate demand and aggregate supply diagram, explain how a decrease in interest rates could cause economic growth and consider whether economic growth will always result in inflation.
With the help of a diagram, explain what is meant by the circular flow of income in an open economy and consider the extent to which it can explain economic growth in such an economy.
Assess whether supply-side policy is the most effective way to achieve long-run economic growth.
Assess whether producers are the only ones to benefit when an economy decides to allocate additional resources to investment.
Assess whether the consequences of economic growth for an economy are always positive.
Entrepreneurs are vital in an economy to achieve long run economic growth.
Assess whether encouraging entrepreneurship or increasing another of the factors of production will be a more effective way to achieve long-run economic growth.
Analyse the causes of an increase in aggregate supply. Discuss the extent to which this might be beneficial for an economy.
Discuss whether supply side policies are the most effective way to generate growth in an economy.
Discuss whether it is likely that economies that have an increase in labour and a high rate of technological innovation will come nearer to solving the economic problem.
Discuss whether an outward shift in an economy’s production possibility curve is more likely to occur in a free market economy or a centrally planned economy.