Aggregate demand and aggregate supply

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Question 56
Easy

Stimulus Material

Ireland's economic profile is highly sensitive to changes in international trade due to its high level of openness. Small, globalised economies typically exhibit a high marginal propensity to import. Between 2021 and 2022, the average annual disposable income for Irish households rose from €36,000 to €40,000, while average household annual spending on imported goods and services rose from €7,200 to €8,200.

Using the information from the stimulus material, calculate Ireland's marginal propensity to import between 2021 and 2022.

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Aggregate demand and aggregate supply Questions

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