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SingaporeEconomicsQuick questions

Inflation, Unemployment and Economic Growth

Quick questions on Actual and potential economic growth explained: H2 Economics

4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the business cycle?
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Real GDP fluctuates around its long-run trend in the business cycle, with four phases:
What is q1?
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Distinguish actual from potential growth. [2 marks]
What is q2?
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State two sources of potential growth. [2 marks]
What is q3?
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Explain one cost of economic growth. [3 marks]

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