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Edexcel A-Level Economics AS 2.3.4 2b Injections Investment Government Expenditure Exports Questions

Use Edexcel IAL Economics 2.3.4.2b evidence to classify government expenditure as an injection and predict its effect on aggregate demand and income.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • identify government expenditure as an injection and infer its effect on aggregate demand and income

Edexcel A-Level Economics AS 2.3.4 2b Injections Investment Government Expenditure Exports Questions question 1

[Maximum number: 1]

From Quarter 12020 to Quarter 2 2020, government expenditure in Russia increased by 25 billion roubles.

Ceteris paribus, what was the most likely effect of this increase?

A

Aggregate demand decreased

B

Withdrawals from the circular flow increased

C

Aggregate supply decreased

D

Injections into the circular flow increased

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