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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 37

Which one of the following combinations is most likely to induce a strong accelerator effect on investment in an economy?

Rate of change of aggregate demandLevel of spare capacity in the economyAvailability of credit for businesses
AFallingHighLow
BRisingHighHigh
CFallingLowLow
DRisingLowHigh

A

B

C

D

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