How can the Government improve economic growth/real GDP of a country?

Definition mark: Economic growth is the increase in real GDP 

Explanation: 

Government can use two ways of increasing economic growth; supply side policies and fiscal policies. 

point 1: Providing subsidies to schools to improve quality of education. Improving education quality will result in more students gaining more skills and becoming more employable. More productivity of people and more jobs results in increase production of goods, therfore an increase in real output will increase exports and therfore more injections into the circular flow of income will increasr the country's GDP and hence there will be economic growth. 

Evaluation: However, it depends on the elasticity of the goods. If the good is inelastic such as oil than the exports will continue to be high and thus increaing economic growth for the country. 

Point & Evaluation x3

Conclusion 

=30 marks 

AD
Answered by Akshay D. Economics tutor

21301 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the difference between Microeconomics and Macroeconomics?


Integrate the function f(x) = (1/6)*x^3 + 1/(3*x^2) with respect to x, between x = 1 and x = 3^(1/2), giving your answer in the form a + b*3^(1/2) where a and b are constants to be determined.


Explain why the growth in the demand for freight transport has been roughly the same as that of GDP.


What are economies of scale and scope?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning