An economy is in a state of macroeconomic equilibrium. The levels of investment, savings, exports, and imports are shown in the table below:
| Injections into and withdrawals from the circular flow of income | Value |
|---|---|
| Investment (III) | £240 bn |
| Savings (SSS) | £310 bn |
| Exports (XXX) | £290 bn |
| Imports (MMM) | £180 bn |
It can be inferred from the data in the table above that
the government has a budget surplus of £40 billion.
the government has a budget deficit of £40 billion.
government expenditure exceeds taxation by £70 billion.
the trade surplus is equal to the budget surplus.
222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.