← Economic growth

What causes growth

Demand-side fills spare capacity; supply-side raises the ceiling.

Sort the cause

• Demand-side: interest-rate cuts, tax cuts, export boom, confident consumers.
• Supply-side: immigration/training (labour), business investment (capital), R&D/technology, productivity gains.
• Sustained growth needs SUPPLY-side improvement — demand-side alone eventually just lifts prices.

Event described	Demand-side or supply-side?
A tax cut boosting consumer spending	Demand-side
A training programme raising workforce skills	Supply-side
Lower interest rates encouraging borrowing	Demand-side
New machinery/technology raising productivity	Supply-side

Practice for this standard covers the whole topic — flashcards and quiz.