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2.4 National income

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Question 27

In October 2022, a survey estimated that the marginal propensity to consume (MPC) in an economy was 0.75.

Calculate the total increase in aggregate demand from an increase in government spending of £120 million.

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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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