4.5 Economic growth
This section of the Cambridge IGCSE Economics (0455) syllabus covers the following topics. Click on the hyperlink to access the relevant content for this section of the syllabus.
| Section | Topic | Guidance |
| 4.5.1 | Definition of economic growth | - |
| 4.5.2 | Measurement of economic growth | Real Gross Domestic Product (GDP) |
| 4.5.3 | Causes and consequences of economic growth |
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| 4.5.4 | Causes and consequences of recession |
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| 4.5.5 | Policies to promote economic growth | the range of policies available to promote economic growth and their effectiveness |
Important changes to the new syllabus for this section of the course can be found by clicking on the icon below.
- Topic 4.5.2 (Measurement of economic growth) - GDP per head (capita) has been removed as a measurement of economic growth. Only real gross domestic product (GDP) needs to be taught. However, note that “real Gross Domestic Product (GDP) per head” remains in Unit 5.1.1 (Indicators of living standards).
- Unit 4.5.3 (Causes and consequences of economic growth) - The new guide has removed references to the PPC as well as “changes in investment, technology”. The table further below highlights the differences:
Table 1 - Comparing learning outcomes for the causes of economic growth
| Legacy syllabus (4.6.4. Causes of economic growth) | New syllabus (4.5.3 Causes of economic growth) |
| How changes in total demand may increase the utilisation of resources and GDP - resulting in a movement from inside toward the PPC | How economic growth may be caused by: (i) an increase in total demand (ii) an increase in the quantity of resources, or (iii) an increase in the quality of resources |
| How economic growth shifts the economy’s PPC to the right and is caused by changes in investment, technology, and the quantity and quality of the factors of production |
- In addition, for Topic 4.5.3 (Consequences of economic growth), the wording has been simplified from "The costs and benefits of economic growth in the context of different economies." (legacy Unit 4.6.5) to “advantages and disadvantages of economic growth”.
- Topic 4.5.4 (Causes and consequences of recession) - The following changes have been made:
- The definition of recession is now explicitly in the syllabus (the previous syllabus referred to the “meaning of recession” in legacy Unit 4.6.3).
- The causes of recession are now stated clearly as: (i) a decrease in total demand, (ii) a decrease in the quantity of resources, and (iii) a decrease in the quality of resources. The legacy syllabus only stated “The causes of recession”.
- The consequences of recession are now stated clearly for different stakeholders: (i) consumers, (ii) workers, (iii) producers/firms, and (iv) the government. The legacy syllabus only stated “The consequences of recession”.
- The learning outcome “how a recession moves the economy within its PPC” has been removed from the new syllabus.
Additional InThinking resources for this section of the syllabus can be accessed by clicking on the hyperlinks below:
Return to the Topic 4 - Government and the macroeconomy homepage
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