The following table shows the planned changes to injections into and withdrawals from the circular flow of income for an economy over one year.
| £bn | |
|---|---|
| Exports | 24 |
| Government expenditure | 30 |
| Imports | 28 |
| Investment | 16 |
| Savings | 22 |
| Taxation | 35 |
Other things remaining the same, these changes would cause
national income to decrease.
the budget deficit to increase.
consumer expenditure to increase.
the balance of trade to move into surplus.
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.