In 2022 many countries experienced low rates of economic growth and high rates of inflation. Evaluate supply-side policies that a government could use to increase the rate of economic growth and to decrease the rate of inflation. Refer to a country of your choice in your answer.

Quantitative skills assessed
QS4: Construct and interpret a range of standard graphical forms

QS9: Interpret, apply and analyse information in written, graphical, tabular and numerical forms.

Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the general marking guidance.
The indicative content below exemplifies some of the points that candidates may make, but this does not imply that any of these must be included. Other relevant points must also be credited.

Knowledge, application and analysis ( 12 marks) - indicative content
- PPF- shows the maximum possible production using all available resources
Factors that could cause a rightward shift of a country's PPF
- Population increase from 9.4 m to 14.1 m (UAE)/ 12.1 m to 18.8 m (Bolivia)/ 113.9 m to 180.2 m (Philippines) increases the size of the available workforce
- More immigration- increases the size of the labour force and production possibilities
- Offering more work visas, offer payments to migrants may encourage immigration, increasing labour force
- Families having more children, will eventually result in larger workforce
- Use of benefits, subsidies and tax breaks to encourage families to have more children, to increase workforce
- Investment in capital goods will increase productivity
- Use of subsidies and tax breaks to encourage investment in capital goods
- More research and development will result in better production processes increasing output
- Encourage research and development- helping to improve innovation and increasing productive potential
- Development of artificial intelligence may replace tasks completed by humans
- Increase spending on education to develop skills to improve productivity
- Increase spending on healthcare to improve health- reducing time lost to absenteeism, sickness
- Increase retirement age so people stay in the labour market for longer
- Reduce school leaving age so that people start to become productive earlier
- Offer training courses to improve skills and productivity
- Discovery of new natural resources

PPF diagram- accept straight line or curved PPFs
Evaluation (8 marks) - indicative content
- Immigrating to a country may not be attractive if jobs are not available in the right areas
- Immigration may cause pressure on public services
- If immigrants do not find suitable opportunities productive potential will not rise
- Payments to migrants create an opportunity cost
- Financial rewards for having more children are unlikely to exceed the costs of having more children
- Subsidies to encourage investment in capital goods create opportunity costs
- Much research and development is unproductive and not all ideas will improve production possibilities
- Artificial intelligence may come with unknown risks and costs
- Spending on education may be in the wrong areas- resulting in smaller impact on productive potential
- Increase in spending on healthcare will only have an impact if it is preventative
- Increasing the retirement age may cause unrest as people are forced to work longer
- If people leave education earlier they may be less skilled
- Possible information failure, government failure if training is in wrong areas
- Time lag e.g. long delay between increased birth rate and increased production possibilities