Distinguish between potential and actual economic growth and discuss the main factors determining each.
Guidance:
The answer should be well structured with an introduction and conclusion and a substantial paragraph on each concept, including diagrams. The question will give you the opportunity to display your knowledge and understanding of actual and potential growth.
Define and explain actual and potential growth.
Explain the causes of each type of growth.
Explain the business cycle and aggregate demand.
Explain productivity and its importance in economic growth.
Explain the factors affecting each type of growth
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