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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 1

Which row in the table below shows the combination of changes that is most likely to lead to an increase in planned aggregate investment by private firms?

Corporate Tax RateBusiness ConfidenceCapacity Utilization Rate
ADecreaseFallRise
BDecreaseRiseRise
**CIncreaseRise
DIncreaseFallFall

Row A

Row B

Row C

Row D

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