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Edexcel A-Level Economics AS 2.3.5 1b Actual Growth Caused By an Increase in the Components of Ad Questions

Practise analysing how rises in consumption, investment, government spending or exports raise real GDP growth using extracts, figures and data.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • analyse how income, employment, inflation or interest rates change consumption, AD and actual growth
  • link investment, FDI or government infrastructure spending to higher AD and real output
  • trace global demand, export competitiveness or net-trade changes through AD to actual growth
  • use real-GDP rates and percentage-point changes to compare growth outcomes with forecasts
  • evaluate growth effects using spare capacity, imports, inflation, debt, saving and other AD components

Edexcel A-Level Economics AS 2.3.5 1b Actual Growth Caused By an Increase in the Components of Ad Questions question 1

[Maximum number: 1]

In 2021 the value of foreign direct investment (FDI) to Singapore was $176 bn. In 2022 this value of FDI increased to $ 195 bn.

Which one of the following is the most likely impact of an increase in investment in an economy?

A

An increase in the rate of economic growth

B

An increase in the rate of unemployment

C

A decrease in the rate of employment

D

A decrease in aggregate demand

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