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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 30

An injection of government spending into an economy, where the marginal propensity to consume (MPC) is 0.6, results in a total increase in national income of 150 million. What was the value of the initial injection?

606060 million

909090 million

250250250 million

375375375 million

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