CAIE A-Level Economics 9.2 Economic Growth and Sustainability Question Bank

CAIE A-Level Economics 9.2 Economic Growth and Sustainability Question Bank
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise distinguishing actual and potential growth, interpreting output gaps and cycles and evaluating policies for sustained, inclusive and environmentally viable expansion.

Exam points

  • use PPC movement and shifts to separate actual from potential growth in national output
  • interpret positive or negative output gaps and business-cycle evidence in GDP, jobs and prices
  • evaluate growth policy through capacity, stability, distribution and environmental sustainability

Covered syllabus points

9.2.1—Actual vs potential growth9.2.2—Output gaps9.2.3—Business cycle9.2.4—Growth policies9.2.5—Inclusive growth9.2.6—Sustainable growth

Question 5

[Maximum number: 20]

Economic growth can only occur when an economy is below full employment.
Evaluate this statement.

Question 5

[Maximum number: 20]

Evaluate how a country might increase its potential economic growth.

Question 13

[Maximum number: 1]

Which stage of the business (trade) cycle is most likely to be characterised by an increasing negative output gap?

A

boom

B

recession

C

recovery

D

trough

Question 17

[Maximum number: 1]

What is most likely to increase if an economy enters a negative output gap?

A

business confidence

B

economic growth rate

C

inflation rate

D

unemployment rate

Question 18

[Maximum number: 1]

Which government policy is least likely to promote inclusive economic growth?

A

increasing the national minimum wage

B

investment in transport and infrastructure

C

legislation reducing the power of trade unions

D

using taxes and transfer payments to redistribute income