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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 31

All other things being equal, when an increase in investment spending leads to a proportionately larger increase in national income, this illustrates

an expansion of long-run aggregate supply.

the operation of the multiplier.

a surplus on the financial account of the balance of payments.

cost-push inflation.

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