INTRODUCTION: Economic growth is arguably the most important of the macroeconomic aims. There a number of reasons for this that can be illustrated by a simple metaphor of sharing a birthday cake or pizza. Imagine that the cake/pizza is the same size and more people are invited to share in it. What happens to the size of the slice? The analogy provide an important insight that generally if a countries population grows and its output (the cake/pizza) stays the same then over time the living standards of the people must decline. If we want to see increased living standards then the cake/pizza must grow by greater than the amount of people sharing it. Similarly output must grow by at least the rate at which the population is growing to keep pace.
ACTIVITY 1: What causes economic growth over time? Using pages 323 to 326 examine the 5 factors that cause economic growth over time. Try to find 3 examples of each to contextualize the idea from news sources or other sections of the textbook. As a last resort ask your teacher for an idea and then research it!
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EXAM PRACTICE: Complete the exam style questions. Make sure that you look at the amount of marks per question when you consider the length of your answer and the number of points to make. Also ensure that you think carefully about the command terms used in the question and ask if you are unsure what the command term is asking.