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2.4 National income

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Question 5

A government-backed initiative to install a high-capacity fibre-optic broadband network across rural regions requires an initial capital injection of £5.8 billion.

The total cumulative increase in the nation's Gross Domestic Product (GDP) resulting from this infrastructure investment is projected to be £26.1 billion.

Calculate the value of the multiplier for this investment. You should show your working.

[2]

2.4 National income Questions

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