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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 9

In an economy, the government increased its spending by £15bn£15\text{bn}£15bn at the same time as investment fell by £5bn£5\text{bn}£5bn. As a result of these changes, national income rose by £15bn£15\text{bn}£15bn. The size of the multiplier is:

0.75

1.00

1.50

2.00

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts