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The multiplier and the accelerator

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Question 10

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
A

0.54

B

1.85

C

2.56

D

4.35

Markscheme

The multiplier and the accelerator Questions

  1. A Level
  2. /Economics
  3. /The multiplier and the accelerator

22 exam-style questions on OCR A Level Economics The multiplier and the accelerator. Each one has a worked solution and a mark scheme showing where the marks go.

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