Spec 7136
Revise AQA A Level Economics 2.2.4 Aggregate demand and the level of economic activity with the question bank, lessons, revision guides, and flashcards.
The role of AD in influencing the level of economic activity. • The multiplier process and an explanation of why an initial change in expenditure may lead to a larger impact on local or national income. • The concept of the marginal propensity to consume and use the marginal propensity to consume to calculate the size of the multiplier. • Why the size of the marginal propensity to consume determines the magnitude of the multiplier effect.
