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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 44

The multiplier effect of an increase in government spending in an economy is

an increase in the productive capacity of the economy

a larger final increase in national income than the initial increase in government spending

a reduction in the marginal propensity to import

an improvement in the government's budget balance

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