........................................ economic growth is determined by supply-side rather than by demand side
factors.
Which word correctly completes this statement?

B Rationale: Potential growth is the rate at which the economy would grow if all resources were
utilised: it is therefore determined by factors in the capacity of the economy (supply side), such
as increases in the amount of resources available, or in the productivity or resources. Actual
growth is determined both by growth in output (supply side) and aggregate demand (demand
side). Option C was merely a distractor.