2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 17

Table 1 shows selected macroeconomic data for an open economy with a government sector for 2028 and 2029.

Table 1

Macroeconomic Component	2028 (€bn)	2029 (€bn)
Export revenue ( $X$ )	140	160
Government spending ( $G$ )	180	165
Investment ( $I$ )	110	125

The country's national income was in macroeconomic equilibrium in both 2028 and 2029. All other things being equal, which one of the following is most likely to have occurred in this country in 2029 to maintain this equilibrium?

A fall in the total value of imports

A reduction in national tax revenues

A decrease in household savings

A rise in national tax revenues

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

A Level
Economics
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

A Level
Economics AQA
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