The LG 91224 Analysing Economic Growth Learning Guide is a structured, write-on student resource specifically designed for the NCEA Level 2 Economics Achievement Standard: Analyse economic growth using economic models. This guide provides students with the essential framework to understand how New Zealand increases its output over time and the resulting impact on the material standard of living for all New Zealanders.
Key Features
Defining and Measuring Growth: Clear explanations of Gross Domestic Product (GDP). Students learn to distinguish between Nominal GDP (current prices) and Real GDP (inflation-adjusted), and why Real GDP is the superior measure for tracking actual increases in production.
GDP per Capita: Introduces the calculation used to measure the average standard of living by dividing total output by the population.
The Production Possibility Frontier (PPF) Model: Practical practice in using the PPF to illustrate growth.
Inward vs. Outward Shifts: Understanding how an increase in the quantity or quality of resources (land, labour, capital, enterprise) shifts the frontier outward, representing an increase in Potential Growth.
Movement Toward the Frontier: Illustrating Actual Growth when an economy utilizes previously unemployed resources.
The AD/AS Model for Growth: Mastering the primary model for Level 2. Students learn to illustrate growth by:
Shifting Aggregate Demand (AD): Driven by increases in Consumption, Investment, Government spending, or Net Exports.
Shifting Aggregate Supply (AS): Driven by lower production costs or improvements in productivity and technology.
Drivers of Economic Growth: Detailed analysis of the "ingredients" for expansion, including:
Investment in Physical Capital: How new machinery and infrastructure boost output.
Human Capital: The role of education, training, and skills in increasing labour productivity.
Technological Change: How innovation allows firms to produce more with the same amount of resources.
Natural Resources: The impact of New Zealand's primary sector on total production.
The Circular Flow Model: Expanding the model to show how increased production leads to higher incomes for households, which in turn fuels further spending and investment.
Impacts of Economic Growth: A balanced evaluation of the consequences:
Positive Impacts: Higher employment, increased tax revenue for government services (healthcare, education), and improved material well-being.
Negative Impacts: Resource depletion, increased pollution/environmental degradation, and the potential for "unequal" growth that leaves some groups behind.
NCEA-Style Practice Tasks: Features scaffolded questions designed to prepare students for the external exam. These tasks focus on the "Excellence" requirement of providing a comprehensive analysis that explains the process of growth and its long-term effects.
Step-by-Step Worked Examples: Provides clear templates for writing growth reports and correctly labeling complex macroeconomic diagrams.
Glossary of Growth Terms: A complete reference for essential vocabulary—such as Productivity, Sustainability, Real GDP, and Infrastructure—ensuring students use the correct technical language.