2.3.5 - Economic growth

The distinction between actual and potential growth.

Use a - distinction between actual and potential growth to connect the rule to the data and decision in the question.

This matters because a - distinction between actual and potential growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between actual and potential growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between actual and potential growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Actual growth caused by an increase in the components of AD.

Use b - actual growth caused by an increase in the components of ad to connect the rule to the data and decision in the question.

This matters because b - actual growth caused by an increase in the components of ad determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - actual growth caused by an increase in the components of ad to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Actual growth caused by an increase in the components of AD is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The importance of international trade for export-led growth.

Use c - importance of international trade for export-led growth to connect the rule to the data and decision in the question.

This matters because c - importance of international trade for export-led growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - importance of international trade for export-led growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - importance of international trade for export-led growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of potential growth:; domestic investment and foreign direct investment (FDI); innovation; growth in size of labour force, including net migration; the degree of competition.

Use d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • to connect the rule to the data and decision in the question.

This matters because d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - causes of potential growth: • domestic investment and foreign direct investment (fdi) • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Causes of potential growth: • domestic investment and foreign direct investment (FDI) • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The importance of productivity for the rate of economic growth.

Use e - importance of productivity for the rate of economic growth to connect the rule to the data and decision in the question.

This matters because e - importance of productivity for the rate of economic growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - importance of productivity for the rate of economic growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - importance of productivity for the rate of economic growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible benefits of growth:; higher living standards; lower unemployment; increased profits for firms; higher levels of investment; increased tax revenues; improved public services.

Use a - possible benefits of growth: • higher living standards • lower unemployment • increased to connect the rule to the data and decision in the question.

This matters because a - possible benefits of growth: • higher living standards • lower unemployment • increased determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible benefits of growth: • higher living standards • lower unemployment • increased to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible benefits of growth: • higher living standards • lower unemployment • increased is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible costs of growth:; opportunity costs; environmental costs; balance of trade deficits; increased inequality; inflation.

Use a - possible costs of growth: • opportunity costs • environmental costs • balance of trade to connect the rule to the data and decision in the question.

This matters because a - possible costs of growth: • opportunity costs • environmental costs • balance of trade determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - possible costs of growth: • opportunity costs • environmental costs • balance of trade to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Possible costs of growth: • opportunity costs • environmental costs • balance of trade is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The difference between actual growth rate and long-term trends in growth.

Use a - difference between actual growth rate and long-term trends in growth to connect the rule to the data and decision in the question.

This matters because a - difference between actual growth rate and long-term trends in growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - difference between actual growth rate and long-term trends in growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - difference between actual growth rate and long-term trends in growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between positive and negative output gaps.

Use b - distinction between positive and negative output gaps to connect the rule to the data and decision in the question.

This matters because b - distinction between positive and negative output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between positive and negative output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between positive and negative output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Characteristics of positive and negative output gaps.

Use c - characteristics of positive and negative output gaps to connect the rule to the data and decision in the question.

This matters because c - characteristics of positive and negative output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - characteristics of positive and negative output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Characteristics of positive and negative output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Difficulties of measuring output gaps.

Use d - difficulties of measuring output gaps to connect the rule to the data and decision in the question.

This matters because d - difficulties of measuring output gaps determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - difficulties of measuring output gaps to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Difficulties of measuring output gaps is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.