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

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Question 63

In the circular flow of income model for an open economy with a government sector, macroeconomic equilibrium occurs when total planned injections equal total planned withdrawals. An analyst compiles the following national accounts data for such an economy:

National Income ( $Y$ ) = $billion\text{£}850\text{ billion}$
Consumption ( $C$ ) = $billion\text{£}540\text{ billion}$
Tax Revenue ( $T$ ) = $billion\text{£}130\text{ billion}$
Investment ( $I$ ) = $billion\text{£}120\text{ billion}$
Government Spending ( $G$ ) = $billion\text{£}150\text{ billion}$
Exports ( $X$ ) = $billion\text{£}100\text{ billion}$

Assuming the economy is in circular flow equilibrium, what are the values of Savings ( $S$ ) and Imports ( $M$ )?

$\text{£}180\text{ billion}$ and $\text{£}60\text{ billion}$

$\text{£}310\text{ billion}$ and $\text{£}60\text{ billion}$

$\text{£}180\text{ billion}$ and $\text{£}140\text{ billion}$

$\text{£}180\text{ billion}$ and $\text{£}190\text{ billion}$

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

Question 63

National Income ( $Y$ ) = $billion\text{£}850\text{ billion}$
Consumption ( $C$ ) = $billion\text{£}540\text{ billion}$
Tax Revenue ( $T$ ) = $billion\text{£}130\text{ billion}$
Investment ( $I$ ) = $billion\text{£}120\text{ billion}$
Government Spending ( $G$ ) = $billion\text{£}150\text{ billion}$
Exports ( $X$ ) = $billion\text{£}100\text{ billion}$

Assuming the economy is in circular flow equilibrium, what are the values of Savings ( $S$ ) and Imports ( $M$ )?

$\text{£}180\text{ billion}$ and $\text{£}60\text{ billion}$

$\text{£}310\text{ billion}$ and $\text{£}60\text{ billion}$

$\text{£}180\text{ billion}$ and $\text{£}140\text{ billion}$

$\text{£}180\text{ billion}$ and $\text{£}190\text{ billion}$

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

Question 63

Markscheme

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

Question 63

Markscheme

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

Question 63

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

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

Question 63

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