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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 98

An open economy is characterized by the following macroeconomic data for a given fiscal year:

  • Household Savings (SSS) = £45 billion
  • Government Spending (GGG) = £55 billion
  • Taxation (TTT) = £40 billion
  • Investment (III) = £35 billion
  • Import Expenditure (MMM) = £50 billion
  • Export Revenue (XXX) = £60 billion

What are the total values of injections (JJJ) and withdrawals (WWW) for this economy's circular flow of income?

A

Total Injections = £150 billion; Total Withdrawals = £135 billion

B

Total Injections = £135 billion; Total Withdrawals = £150 billion

C

Total Injections = £140 billion; Total Withdrawals = £145 billion

D

Total Injections = £160 billion; Total Withdrawals = £125 billion

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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