CAIE IGCSE Topical Past Paper 2

2.6 Price changes 

0455/21/O/N/25 

In the first half of 2022, Guyana’s GDP grew by 36.4%. Most of this growth was due to higher output in the primary sector. The government used some of the tax revenue generated from this growth to fund long‑run development projects such as infrastructure and education. However, in the short run, there was a rise in house prices.

(c) Analyse why house prices may increase. [6]