Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

(a)[8]

Explain two causes of economic growth and judge how far their effects can be measured.

(b)[12]

Assess the extent to which economic growth is always beneficial for the people and government in an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: AO1 Knowledge and understanding (max 3): Economic growth is the rise in the real value of goods and services produced in an economy over time (1); explanation of two causes (e.g. increase in AD — higher real wages, direct tax cuts, lower interest rates; increases in LRAS — increased investment, increased productivity) (1+1).

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