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2.4 National income

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Question 7

In a quarterly economic bulletin, analysts estimated that the marginal propensity to consume (MPC) in an economy was 0.875.

Calculate the total increase in aggregate demand resulting from an injection of £85 million of private sector investment.

[4]
Markscheme

2.4 National income Questions

  1. A Level
  2. /Economics
  3. /2.4 National income

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.

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