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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 34

Extract C: Investment in Green Infrastructure

The UK Government has finalised plans for the construction of the Humber Green Energy Hub. The Treasury estimates that the initial capital investment injection for this regional green energy infrastructure project will be £16.4 billion. Economic models project that this initial injection will lead to a total cumulative increase in national income of £41.8 billion.

Assuming that the total cumulative increase in national income as a result of the Humber Green Energy Hub project is £41.8 billion, use the information in Extract C to calculate, to one decimal place, the value of the multiplier.

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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