Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Part 1[25]

In 2012, after a period of weak demand in an economy, private consumption and investment rose and economic growth occurred. This was not completely beneficial because the rise in economic growth can clash with other government objectives. Explain why an increase in private consumption and investment might have led to an increase in economic growth and consider whether you agree that this may conflict with other government objectives.

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