The government announces a £360 million investment to upgrade the digital infrastructure and roll out ultra-fast fibre broadband across rural communities in Cornwall. Economists estimate that the regional multiplier for this infrastructure spending is 1.75. Assuming other things remain equal, what will be the total increase in national income (GDP) resulting from this investment?
£205.7205.7205.7 million
£630630630 million
£270270270 million
£360360360 million
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.