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2.4 National income

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Question 16

In a hypothetical economy, the government estimates that for every additional £100 of national income generated:

  • £5 is saved by households,
  • £12 is taken in taxation,
  • £8 is spent on imported goods and services.

Which one of the following is the correct size of the national income multiplier?

A

0.250.250.25

B

1.331.331.33

C

4.004.004.00

D

5.005.005.00

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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