Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  2. Economics Edexcel A
  3. Question bank

2.4 National income

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445
Question 16

An economy receives an initial fiscal injection of £11.6 billion from a government program dedicated to upgrading aerospace manufacturing facilities. The marginal propensity to consume (MPC) in this economy is estimated to be 0.75.

Calculate the total final increase in aggregate demand resulting from this injection, assuming no other changes in the economy.

[2]

2.4 National income Questions

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