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Aggregate demand and aggregate supply

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Question 20

Use the information below to calculate the size of the national income multiplier.

Table 1: Economic Indicators for an Economy

IndicatorValue
Gini coefficient0.38
Marginal Propensity to Import (MPM)0.16
Marginal Propensity to Save (MPS)0.23
Marginal Rate of Taxation (MRT)0.15
Income elasticity of demand for imports1.45

0.54

1.85

2.56

4.35

Aggregate demand and aggregate supply Questions

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