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CAIE A-Level Economics A2 9.1.2 Ad Components and Determinants Questions

Practise identifying consumption, investment, government spending and net exports, then explain how their determinants shift aggregate demand.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Explain aggregate-demand components and determinants, including consumption, investment, government spending and net exports.

CAIE A-Level Economics A2 9.1.2 Ad Components and Determinants Questions question 1

[Maximum number: 1]

When is an increase in national income most likely to induce an increase in investment spending?

A

when firms have spare production capacity

B

when firms use labour-intensive production

C

when the increase in income is regarded as permanent

D

when the increase in income is regarded as temporary

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