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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 88

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 incomeValue
Investment£180 bn
Savings£120 bn
Exports£220 bn
Imports£340 bn

It can be inferred from the data in the table above that

A

the government has a budget surplus.

B

government expenditure is less than taxation.

C

the government has a budget deficit.

D

the trade deficit is equal to the budget deficit.

Markscheme

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

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.

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