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Pearson Edexcel IAL Economics 2.3.5.1b Actual growth caused by an increa

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

  • use extract evidence to analyse two AD components causing faster or slower real GDP growth
  • interpret figures or percentages to link investment, exports or spending to actual growth
  • explain how higher investment or FDI can increase AD and raise the growth rate

2.3.5.1b - Actual growth caused by an increase in the components of AD 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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