📈 Economics · AS 91224 · 2.3

Economic growth

External 4 credits GDP Real vs nominal Causes of growth Living standards

Every paper: what GDP is and how growth is measured (real vs nominal, per capita, the rate calculation), then what causes growth — demand-side and supply-side, with a scenario to identify. Costs and benefits of growth round it off.

Reference sheet →

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

Three questions every year, using three distinct models in a fixed order: the AS/AD model (Question One), the circular flow model (Question Two), and the production possibility frontier (Question Three) — each tied to a real NZ economic event or project. GDP's limitations as a measure (ignoring distribution, non-market activity, or net social welfare) recur as their own written part almost every year.

Across 4 years

12 questions · 41 parts 17 Achieved 11 Merit 13 Excellence

The pattern — what to prepare

Topic	Appears in	Grade level	What to practise
The AS/AD model, always Question One, needing BOTH the AS and AD shift explained from one event	3/3 years	A–E	"The AS/AD model" — the section this checklist added; look for both a demand-side and a supply-side effect in one scenario.
The circular flow model, always Question Two, naming which specific flow(s) increase and why	3/3 years	A–E	"The circular flow model" — an overseas visitor's spending is an export receipt (new money); a domestic visitor's is not.
The production possibility frontier, always Question Three, testing opportunity cost and future-capacity shifts	2/3 years directly (2024, 2025); underlies 2023's A-B/C-D graph comparison too	A–E	"The production possibility frontier" — capital/infrastructure spending shifts the FUTURE PPF out further than consumer spending does.
GDP's limitations as a growth measure — real vs nominal, per capita, or a broader measure like net social welfare	4/4 years	M–E	"Measuring growth" — always name a SPECIFIC thing GDP ignores (distribution, non-market work, environmental cost), not just "it isn't perfect".
A land-use conversion (e.g. dairy to forestry) compared for its impact on workers AND future export receipts, across different timeframes	2022 confirmed	E	"Land-use change: comparing growth impacts across sectors" — name a specific loss (now) and a specific gain (later), with timing stated.
A growth project's impact on the government's OPERATING BALANCE (revenue minus expenditure), not just one side	2022, 2025 confirmed	E	"Growth's impact on the government's operating balance" — trace BOTH revenue and expenditure, and note the timing mismatch between them.
A "compare two events for which had the bigger growth impact" task, requiring both a demand-side AND supply-side effect traced for each event	4/4 years, always at least once per paper	E	"The AS/AD model" — look for both a demand-side and supply-side effect in each scenario before comparing their relative scale.
A natural disaster (cyclone) or capacity-damaging event explained via its effect on the AS curve and real output	2/4 years directly (2024), and recurring on the wider question index	A–M	"Measuring growth" and "The AS/AD model" — link the disaster to a specific productive-capacity mechanism, not just "it was bad".

2025 A Northland peanut trial, a battery-powered aircraft, and net social welfare 10 parts

The 2025 paper ↗ Marking schedule ↗

Question One — The circular flow model

A Northland peanut-growing trial could boost regional exports.

a Use the circular flow model to identify money Flow A and explain a reason it might decrease, then identify an injection and a reason it might increase. Achieved
b Explain why economic growth would increase if the Northland trial is successful, referring to at least two flows. Merit
c Discuss the impact of a successful trial on the government's operating balance (revenue − expenditure). Excellence

Question Two — Aggregate demand and aggregate supply

Air New Zealand purchases a battery-powered aircraft, and considers requiring sustainable aviation fuel (SAF) for domestic flights.

a Use the AD formula to explain why purchasing the aircraft decreases short-term aggregate demand. Achieved
b On Graph One, show the long-term impact of operating the new aircraft on aggregate supply and economic growth. Achieved
c Referring to Graph One, explain how operating the aircraft changes aggregate supply and economic growth. Merit
d Compare and contrast the impact of making SAF compulsory for domestic flights on economic growth and on the environment. Excellence

Question Three — Measures of economic growth

Households growing their own fruit and vegetables from seeds, versus buying them; net social welfare as a broader growth measure; two PPF-style graphs of decreased growth.

a Explain the short-term and long-term effect on GDP if more people grow their own fruit and vegetables from seeds. Achieved
b Explain one situation where GDP could increase but net social welfare decreases. Merit
c Compare and contrast the causes and effects of the economic-growth decreases shown in two graphs (A to B, and C to D), and which would be worse for long-term growth. Excellence

2022 Shovel-ready projects, border reopening, forestry vs dairy, and the Sleepyhead Estate 10 parts

The 2022 paper ↗ Marking schedule ↗

Question One — Aggregate demand and aggregate supply

The government announced "shovel-ready" infrastructure projects in 2020; separately, around 300,000 temporary visa holders returned to their home countries during COVID-19, then borders re-opened.

a Explain the shift of both the aggregate demand and aggregate supply curves on Graph One, due to the increase in "shovel ready" government projects. Achieved
b Using the resource material, explain the shift of both the aggregate demand and aggregate supply curves on Graph Two, due to the fall in temporary worker numbers from overseas. Achieved
c Explain why growth may be larger due to borders re-opening and temporary workers returning to 2020 levels, compared to the impact of the shovel-ready projects. Excellence

Question Two — Production possibility frontier

Dairy farms are converted into forestry (Point A to Point B on a forestry/dairy PPF); efforts to cut carbon emissions and higher rates of return are driving the shift.

a(i) Add and label Point B as the new combination of forestry and dairy farming, if more dairy farms are converted into forestry. Achieved
a(ii) Label the opportunity cost of this new combination. Achieved
b Using Graph Three, explain why there is an opportunity cost of increasing forestry output. Merit
c Compare and contrast the positive and negative impacts on growth of rural land being used for permanent forestry instead of agricultural products, including the impact on rural workers and on future export receipts. Excellence

Question Three — Impacts of economic growth

The Sleepyhead Estate project proposes 1,100 new homes and associated community facilities in Waikato.

a Referring to the circular flow model, explain how a successful Sleepyhead Estate project would increase growth in New Zealand. Merit
b(i) Compare and contrast the advantages and disadvantages of the Sleepyhead project to families, including workers, in the 1,100 new homes. Excellence
b(ii) Compare and contrast the impact of the project on government revenue and expenditure. Excellence

2024 Te Kaha stadium and Te Pae convention centre, astrotourism, and Cyclone Gabrielle 12 parts

The 2024 paper ↗ Marking schedule ↗

Question One — Aggregate demand and aggregate supply

Construction and operation of the Te Kaha stadium and Te Pae Christchurch Convention Centre.

a Explain each shift (AS and AD) shown in Graph One, and the impact on economic growth, due to Te Kaha. Achieved
b Explain one disadvantage of using real GDP to measure economic growth. Merit
c Compare and contrast the impact of Te Pae opening on regional growth rates, and on the distribution of income in Christchurch. Excellence

Question Two — Impacts of economic growth

Astrotourism growth around Lake Tekapo's dark skies.

a Referring to the circular flow model, identify three flows that will increase due to increased astrotourism. Achieved
b Choose one flow identified above and explain why it will increase. Achieved
c Explain why an overseas tourist visiting Lake Tekapo might increase growth more than a domestic tourist. Merit
d Compare and contrast the impact of astrotourism on government revenue/expenditure, and on Lake Tekapo residents vs hospitality businesses. Excellence

Question Three — Production possibility frontier

Cyclone Gabrielle damaged roading, water, and farming infrastructure; the Government could raise taxes to fund more resilient infrastructure.

a Explain why a cyclone leads to lower GDP, including a definition of GDP. Achieved
b On Graph Two, label the opportunity cost of increasing taxes to fund infrastructure spending (point A to point B). Achieved
c Referring to Graph Two, explain why there is an opportunity cost of increasing taxes for infrastructure spending. Merit
d On Graph Three, draw a future PPF (Y*) that occurs if New Zealand instead operates at point A. Merit
e Referring to Graph Three, explain why the future PPF (Y*) differs in potential capacity from the future PPF (X*) created by point B. Excellence

2023 Data centres and working from home, tourism in Queenstown, and real vs nominal GDP 9 parts

The 2023 paper ↗ Marking schedule ↗

Question One — Aggregate supply and aggregate demand

Large-scale investment in data centres, and separately, increased working from home.

a Explain each shift (AS and AD) shown in Graph One, due to the investment in data centres. Achieved
b Explain each shift (AS and AD) shown in Graph Two, due to increased working from home. Achieved
c Explain why growth may be greater from data-centre investment than from increased working from home, referring to both graphs. Excellence

Question Two — Impacts of economic growth

Growing tourist numbers in Queenstown, and a transition toward sustainable tourism.

a Referring to the circular flow model, explain how an increase in Queenstown tourists would increase growth in New Zealand. Merit
b Compare and contrast the impact of a successful transition to sustainable tourism on different regional growth rates, and on workers in the tourism vs agricultural sectors. Excellence

Question Three — Measures of economic growth

Real GDP grew 3.5% in December 2021, but fell 0.6% in December 2022.

a What do the letters GDP stand for? Achieved
b Explain two reasons why an increase in real GDP is better for the NZ economy than a decrease. Achieved
c Why is using real GDP to measure economic growth better than using nominal GDP? Merit
d Compare and contrast the usefulness of real GDP against one other measure of economic growth. Excellence

Grades above are read from each year's own Achievement/Merit/Excellence evidence statement, condensed to the actual task — the schedules also grade holistically per question on a 0–8 scale, not a fixed mark per bullet.

Past exams & resources

Past exams & marking schedules, AS 91224 (last 5 years)
Year	Exam paper	Marking schedule
2025	Exam paper	Marking schedule
2024	Exam paper	Marking schedule
2023	Exam paper	Marking schedule
2022	Exam paper	Marking schedule
2021	Exam paper	Marking schedule

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.

NZQA 91224 exams & schedules GDP definitions and growth causes every year