Real GDP per capita in Redhaven rose by 1.2% in one year. Households financed a sharp increase in consumption by borrowing, even though the economy was already close to full capacity. Consumer prices rose by 6%. Money wages for the lowest-paid workers rose by 2%, while firms' profits rose strongly.
Evaluate whether residents' living standards are likely to have improved because of this economic growth.
78 exam-style questions on OCR GCSE Economics 3.1 Economic growth, covering 3.1.1 What is economic growth, 3.1.2 Calculate economic growth using GDP, 3.1.3 Explain how growth is measured, 3.1.4 Analyse GDP data, 3.1.5 Determinants of economic growth, and 3.1.6 Costs and benefits of economic growth. Each one has a worked solution and a mark scheme showing where the marks go.