Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  3. Economics AQA
  5. Question bank

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

EasyMediumHard
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849
Question 25

Which one of the following statements about household saving in an economy is correct?

Saving represents an injection into the circular flow of income.

An increase in household saving always leads to an immediate expansion of aggregate demand.

A decrease in the savings ratio generally increases short-run consumer expenditure, assuming disposable income is constant.

High levels of saving guarantee high levels of demand-pull inflation in the short run.

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