A government invests £7.8 billion as an initial fiscal injection to upgrade regional transport networks. The marginal propensity to consume (MPC) within this economy is estimated to be 0.68.
Calculate the final total increase in aggregate demand resulting from this injection, assuming there are no other changes to the economy.
75 exam-style questions on Edexcel A A Level Economics 2.4 National income, covering 2.4.1 National income, 2.4.2 Injections and withdrawals, 2.4.3 Equilibrium levels of real national output, and 2.4.4 The multiplier. Each one has a worked solution and a mark scheme showing where the marks go.