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Economic growth

4.5

What the syllabus asks of you

  • Definition of economic growth
  • Measurement of economic growth: real Gross Domestic Product (GDP)
  • Causes and consequences of economic growth: how economic growth may be caused by an increase in total demand, an increase in the quantity of resources or an increase in the quality of resources
  • Causes and consequences of economic growth: advantages and disadvantages of economic growth
  • Causes and consequences of recession: definition of recession
  • Causes and consequences of recession: how a recession may be caused by a decrease in total demand, a decrease in the quantity of resources or a decrease in the quality of resources
  • Causes and consequences of recession: consequences of recession for consumers, workers, producers/firms and the government
  • Policies to promote economic growth: the range of policies available to promote economic growth and their effectiveness

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Chapter 4: Economic growth

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44 questions

1May / June 2026 · Paper 11 · Q22
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Aglobal demand
Bgovernment spending
Cinterest rate
Dmoney supply

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2May / June 2026 · Paper 12 · Q22
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Aquarter 1
Bquarter 2
Cquarter 3
Dquarter 4

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3Oct / Nov 2025 · Paper 13 · Q22
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Aby an increase in the monetary value of goods produced
Bby an increase in the number of people in employment
Cby an increase in the real Gross Domestic Product (GDP)
Dby an increase in the value of the Human Development Index (HDI)

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4May / June 2025 · Paper 11 · Q4
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ADemand for food to be consumed at home would rise.
BGross Domestic Product (GDP) would fall.
CThe profits from restaurants and cafés would fall.
DStaff working in restaurants and cafés would lose income.

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5Oct / Nov 2024 · Paper 12 · Q17
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Anominal GDP rising at a faster rate than employment
Bnominal GDP rising faster than inflation
Cnominal GDP rising faster than the population
Dnominal GDP rising

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6Oct / Nov 2024 · Paper 12 · Q20
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AIt is an increase in the general level of prices over time.
BIt is an increase in the level of a nation's output over time.
CIt is an increase in the level of total demand over time.
DIt is an increase in wages, interest, profits and rent over time.

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7Oct / Nov 2024 · Paper 13 · Q21
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Aindividuals: increase in absolute poverty; the economy: increase in inflation
Bindividuals: increase in average incomes; the economy: increase in government tax revenue
Cindividuals: increase in the variety of goods and services; the economy: reduction in exports
Dindividuals: increase in unemployment; the economy: reduction in the standard of living

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8May / June 2024 · Paper 11 · Q21
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AFarmers' families consume most of their own produce.
BFarmers have low rates of saving.
CThe size of harvest is dependent on the weather.
DThe surplus produce is sold to the government.

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9May / June 2024 · Paper 12 · Q21
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Aan increase in net emigration
Ban increase in the birth rate
Can increase in the death rate
Dan increase in the retirement age

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10May / June 2023 · Paper 12 · Q4
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Aagricultural prices
Baverage earnings in the secondary sector
Creal Gross Domestic Product (real GDP)
Dtotal costs of German pharmaceutical firms

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11May / June 2023 · Paper 12 · Q21
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Aa reduction in the rate of inflation
Ban increase in the rate of economic growth
Cthe existence of economic growth
Dthe existence of economic growth per capita

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12May / June 2023 · Paper 12 · Q23
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A2000–2001
B2007–2008
C2009–2010
D2014–2015

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13Oct / Nov 2022 · Paper 12 · Q19
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AOutput fell throughout the period.
BOutput was at its highest in year 1.
COutput was at its highest in year 5.
DOutput was at its lowest in year 4.

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14Oct / Nov 2022 · Paper 12 · Q20
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AThe activity would be recorded as income for the decorator.
BThe individual would have more leisure time.
CThe professional decorator can purchase materials at a discount.
DThe professional decorator would work less efficiently than the individual.

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15Oct / Nov 2022 · Paper 13 · Q20
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Aby calculating the total value of all goods and services produced within the economy
Bby measuring the average prices of a basket of goods and services throughout the country
Cby subtracting government expenditure from government revenue
Dby surveying the number of people who are out of work but willing and able to work

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16May / June 2022 · Paper 11 · Q20
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Adecreased employment
Bdecreased investment
Cdecreased productivity
Ddecreased taxation

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17May / June 2022 · Paper 11 · Q23
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AThe government would increase taxes to combat the recession.
BThe purchasing power of households would fall.
CThe value of the domestic currency would increase.
DThere would be a rise in the level of immigration.

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18May / June 2022 · Paper 12 · Q20
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Aa fall in labour productivity
Ban increase in the productive capacity of the economy
Can increase in the Consumer Prices Index (CPI)
Dthe economy enters a period of recession

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19Oct / Nov 2021 · Paper 12 · Q18
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Aincrease in absolute poverty; increase in inflation
Bincrease in average incomes; increase in government tax revenue
Cincrease in the variety of goods and services; reduction in exports
Dincrease in unemployment; reduction in the standard of living

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20Oct / Nov 2021 · Paper 13 · Q16
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Abudget surplus
Bcurrent account deficit
Cinflation
Drecession

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21Oct / Nov 2021 · Paper 13 · Q18
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Aincreasing trade union strike action
Blowering the age of retirement
Creducing training of workers
Dremoving immigration controls

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22May / June 2021 · Paper 11 · Q21
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Aa reduction in a country's rate of inflation.
Ban increase in a country's exports.
Can increase in a country's population.
Dan increase in a country's productive capacity.

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23May / June 2021 · Paper 12 · Q21
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Aa reduction in a country's rate of inflation.
Ban increase in a country's exports.
Can increase in a country's population.
Dan increase in a country's productive capacity.

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24Oct / Nov 2020 · Paper 13 · Q21
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A2000–2001
B2007–2008
C2009–2010
D2014–2015

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25May / June 2020 · Paper 11 · Q18
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AThe central bank encourages bank lending.
BThe central bank lowers interest rates.
CThe government increases sales tax (VAT).
DThe government subsidises new industries.

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26May / June 2020 · Paper 11 · Q21
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Ahigher imports
Bhigher levels of resources
Chigher taxation
Dhigher unemployment

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27May / June 2020 · Paper 12 · Q21
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Aquarters 1 and 2
Bquarters 2 and 3
Cquarters 3 and 4
Dthe entire period

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28Oct / Nov 2019 · Paper 12 · Q20
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Ahyperinflation
Bincome taxes
Cinterest rates
Dinvestment

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29Oct / Nov 2019 · Paper 13 · Q20
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Aa decrease in living standards
Ba decrease in the budget surplus
Can increase in tax revenues
Dan increase in unemployment

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30May / June 2019 · Paper 11 · Q23
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AAustralia
BBrazil
CChina
DJapan

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31Oct / Nov 2018 · Paper 12 · Q20
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Aconsumer spending.
Bgross domestic product.
Cthe output of the manufacturing and construction industries.
Dthe retail price index (RPI).

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32Oct / Nov 2018 · Paper 12 · Q26
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Athe building of an irrigation system
Bthe construction of a new airport
Cthe distribution of gifts of food
Dthe training of technical staff

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33Oct / Nov 2018 · Paper 13 · Q20
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AEconomic growth in the economy falls for at least two consecutive quarters.
BGross domestic product (GDP) falls for at least two consecutive quarters.
CThe current account of the balance of payment is in deficit for at least two consecutive quarters.
DThe government experiences a budget deficit for at least two consecutive quarters.

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34Oct / Nov 2018 · Paper 13 · Q26
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Athe building of an irrigation system
Bthe construction of a new airport
Cthe distribution of gifts of food
Dthe training of technical staff

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35May / June 2018 · Paper 11 · Q20
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Abudget deficit
Binflation
Crecession
Dtrade deficit

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36May / June 2018 · Paper 11 · Q22
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Aan increase in economic growth
Ban increase in exports
Can increase in incomes
Dan increase in unemployment

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37May / June 2018 · Paper 12 · Q20
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A–6.0, 1.0, –2.0, 1.0
B0.0, –1.0, 0.0, –0.1
C0.1, 0.1, 0.1, –3.0
D1.0, 1.0, –0.5, –0.5

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38May / June 2018 · Paper 12 · Q22
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Aan increase in economic growth
Ban increase in exports
Can increase in incomes
Dan increase in unemployment

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39May / June 2017 · Paper 11 · Q20
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Acosts of production
Bgross domestic product
Cunemployment
Dwage levels

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40May / June 2017 · Paper 12 · Q20
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Acosts of production
Bgross domestic product
Cunemployment
Dwage levels

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41Oct / Nov 2016 · Paper 13 · Q20
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AProduction will decrease.
BSaving will decrease.
CTaxation will decrease.
DThe population will decrease.

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42May / June 2016 · Paper 11 · Q23
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Aa higher Gross Domestic Product
Ba lower rate of inflation
Ca surplus on the balance of trade
Dan improved standard of living for everybody

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43May / June 2016 · Paper 11 · Q24
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AThere are unused resources.
BThere is a high reliance on imports.
CThere is a large amount of subsistence farming.
DThere is a small amount of skilled labour.

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44May / June 2016 · Paper 12 · Q20
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Anegative growth of Gross Domestic Product
Brising interest rates
Crising levels of employment
Dsteadily falling price levels

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