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Decrease in Resources and Government Economic Aims


Analyse the effect of a decrease in resources on government economic aims.


Macroeconomic Factors and Policies

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I. 🍃Introduction
- Definition of economic growth
- Importance of resources in achieving economic growth

II. Fewer resources and economic growth
- Explanation of how fewer resources can make it more difficult to achieve economic growth
- Impact on factors of production and output

III. Increased costs of production
- Explanation of how fewer resources may increase costs of production
- Impact on supply and demand, and cost-push inflation

IV. Natural disasters and government expenditure
- Explanation of how natural disasters can lead to cost-push inflation and loss of employment
- Impact of government expenditure exceeding government income

V. Current account deficit
- Explanation of how fewer resources may lead to a larger current account deficit
- Impact on exports and imports

VI. Unemployment and rebuilding
- Explanation of how destruction of factories may reduce unemployment opportunities
- Impact on unemployment and need for workers to rebuild factories

VII. 👉Conclusion
- Summary of key points
- Importance of managing resources for economic growth.

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