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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 3

The government spends £2 billion upgrading public healthcare facilities. As a result, in addition to this initial investment, national income increases by a further £6 billion.

What is the value of the multiplier?

0.25

1.33

3.0

4.0

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