Question 5
[Maximum number: 20]
Evaluate how a country might increase its potential economic growth.
CAIE A-Level Economics 9.2.4 Growth Policies
Practise evaluating demand and supply policies for actual or potential growth through investment, human capital, infrastructure, trade and institutions while considering cost and…
How this is tested
- link education, training, infrastructure or innovation to productivity and outward LRAS
- use demand policy to close spare-capacity gaps while checking inflation and crowding out
- evaluate policy through implementation lag, fiscal opportunity cost, confidence and development context