(a)[2]
Identify two government policies in the article that could help to raise aggregate demand.
(b)[5]
The article says that there has been a 'marked improvement in the housing market'. Using the article and your own knowledge, explain how an economy might benefit from an 'improvement in the housing market'.
(c)[6]
Using the evidence in the article, assess whether it contradicts the view that an increase in house prices is an improvement for an economy.
(d)[7]
The article compares a model in which growth rises through consumer spending with a model in which growth rises through exports. Select two macroeconomic aims of a government and discuss how the two growth models could affect those aims differently.