9.2 Economic growth and sustainability

Evaluate whether an increase in a government's budget deficit will always lead to economic growth. [20]

Evaluate how a country might increase its potential economic growth. [20]

Between 2010 and 2020, very low interest rates encouraged low-income countries to borrow money from foreign investors and governments to finance long-term economic growth.

Evaluate this approach to promoting long-term economic growth. [20]

In many countries increased government spending is regarded as a cause of economic growth. It is sensible, therefore, for a government to spend more to increase economic growth as it is good for its country.

To what extent do you agree with this argument? [20]

A government allows the merger of two large firms in the same industry.

With the help of a diagram, evaluate the view that this merger should not have been allowed. [20]

With the help of a diagram, assess the effectiveness of using fiscal policy to close a negative output gap in an economy [20]

Explain what is meant by infrastructure and consider the view that an increase in investment in infrastructure will promote an increase in both actual and potential economic growth. [12]

Explain how governments measure economic growth and discuss why this measurement is important. [12]