Econ a level summary notes (A GRADE)

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2.5.1 causes of growth
-​ Factors which could cause economic growth
-​ The distinction between actual and potential growth
-​ The importance of international trade for (export-led) economic growth

2.5.2 output gaps
-​ Distinction between actual growth rates and long-term trends in growth rates
-​ Understanding of positive and negative output gaps and the difficulties of
measurement
-​ Use of an AD/AS diagram to illustrate an output gap (level of spare capacity) in
an economy

2.5.3 Trade (business) cycle
-​ Understanding of the trade (business) cycle
-​ Characteristics of a boom
-​ Characteristics of a recession

2.5.4 The impact of economic growth
-​ The benefits and costs of economic growth and the impact on:
-​ consumers
-​ firms
-​ the government
-​ current and future living standards