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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 96

An economy is in macroeconomic equilibrium with aggregate expenditure and national income each equal to 780 billion780\text{ billion}780 billion. This indicates that the value of national output must be:

A

780 billion780\text{ billion}780 billion plus any adjustments for the balance of payments.

B

the same as national income and aggregate expenditure.

C

1,560 billion1,560\text{ billion}1,560 billion when the marginal propensity to consume is taken into account.

D

equivalent to national income adjusted for changes in the general price level.

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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