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WAEconomicsQuick questions

Unit 4: Macroeconomic Theory and Economic Policy

Quick questions on Economic growth: WACE Year 12 Economics Unit 4

1short 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 demand-side (short run)?
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In the short run, growth comes from rising aggregate demand: increases in consumption, investment, government spending or net exports lift output toward the economy's capacity. Demand-driven growth is what policy stimulus targets in a downturn.

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