Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

(a)[2]

Name two components of aggregate demand that are not referred to in the first paragraph of the extract.

(b)[2]

Calculate the percentage rise in US GDP from 1 July to 1 October 2007.

(c)[2]

Why does Fig. 4 describe a ‘falling dollar’ even though the line trends upward?

(d)[6]

Discuss how effective a cut in interest rates is likely to be as a remedy for a slump in the housing market.

(e)[8]

To what extent does the data support the view that the US economy was dealing with ‘conflicting policy objectives’?

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: government expenditure/investment

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