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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 94

In the circular flow of income model, which of the following equations represents the correct relationship between the three different methods of measuring economic activity?

A

National Output=National Expenditure=National Income\text{National Output} = \text{National Expenditure} = \text{National Income}National Output=National Expenditure=National Income

B

National Income=Total Injections−Total Withdrawals\text{National Income} = \text{Total Injections} - \text{Total Withdrawals}National Income=Total Injections−Total Withdrawals

C

National Output=Total Consumption+Total Savings\text{National Output} = \text{Total Consumption} + \text{Total Savings}National Output=Total Consumption+Total Savings

D

National Expenditure=National Income+Total Injections\text{National Expenditure} = \text{National Income} + \text{Total Injections}National Expenditure=National Income+Total Injections

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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