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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 18

All other things being equal, a substantial increase in government spending on national infrastructure and education is most likely to

increase both aggregate demand and long-run aggregate supply.

increase aggregate demand but not long-run aggregate supply.

increase long-run aggregate supply but not aggregate demand.

increase neither aggregate demand nor long-run aggregate supply.

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