The following table shows the planned changes to injections into and withdrawals from the circular flow of income for an open economy with a government over the course of one year.
| Component | Planned annual change (£bn) |
|---|---|
| Exports | 35 |
| Government expenditure | 40 |
| Imports | 42 |
| Investment | 48 |
| Savings | 32 |
| Taxation | 45 |
Other things remaining the same, these planned changes would cause
the government budget to move into deficit.
the balance of trade to move into surplus.
national income to increase.
national income to decrease.
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.