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2.4 National income

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Question 20

The Australian federal government announces a major investment package of AU4.8billiondedicatedtoupgradinggreenhydrogenproductionfacilitiesacrossthecountry.Economicmodelssuggestthatoncethisinjectionfullycirculatesthroughtheeconomy,theresultingtotalincreaseinAustralia′sgrossdomesticproduct(GDP)willbeAU 4.8 billion dedicated to upgrading green hydrogen production facilities across the country. Economic models suggest that once this injection fully circulates through the economy, the resulting total increase in Australia's gross domestic product (GDP) will be AU4.8billiondedicatedtoupgradinggreenhydrogenproductionfacilitiesacrossthecountry.Economicmodelssuggestthatoncethisinjectionfullycirculatesthroughtheeconomy,theresultingtotalincreaseinAustralia′sgrossdomesticproduct(GDP)willbeAU 20.4 billion.

Calculate the value of the multiplier for this investment program. Show your working.

[2]

2.4 National income Questions

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