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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

Use Edexcel IAL Economics 2.3.5.1b questions to link AD components such as consumption, investment and net exports to actual real-GDP growth.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • analyse how higher consumption or net exports shift AD right and raise actual real output
  • explain how inflation, interest rates or weak global demand reduce AD components and slow actual growth

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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