CAIE A-Level Economics A2 9.1.1 Multiplier Process Questions

Practise calculating MPC, MPS and multiplier effects, then evaluate how injections, leakages and policy changes alter national income.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Calculate multiplier values and use injections, leakages and income changes to evaluate macroeconomic effects.

CAIE A-Level Economics A2 9.1.1 Multiplier Process Questions question 1

[Maximum number: 1]

What is a necessary assumption of the Keynesian multiplier model?

A

increasing average propensity to save

B

flexible costs and prices

C

full employment of resources

D

open economies

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