Aggregate demand and aggregate supply

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Question 21
Easy

The diagram below illustrates the circular flow of income for an open economy with government.

Circular Flow of Income

Suppose that the macroeconomic data for this economy over a given financial year is recorded as follows:

  • Household Savings (SSS) = £42bn
  • Government Taxation (TTT) = £56bn
  • Spending on Imports (MMM) = £38bn
  • Planned Investment (III) = £48bn
  • Government Expenditure (GGG) = £52bn

If the economy is in circular flow equilibrium, what is the value of Exports (XXX)?

£26bn

£36bn

£40bn

£46bn

Aggregate demand and aggregate supply Questions

  1. A Level
  2. /Economics
  3. /Aggregate demand and aggregate supply