Skip to content

Course home

Sign up

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

EasyMediumHard
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061626364656667686970717273747576777879808182838485868788899091929394959697
Question 40

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.

[4]
Markscheme

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

222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank