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Pearson Edexcel IAL Economics 2.3.4.2b Injections: • investment • govern

Practise identifying investment, government expenditure and exports as injections and linking them to aggregate demand or income flows.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • identify investment, government spending or exports as injections in a given economy
  • link higher government expenditure to increased injections and aggregate demand

2.3.4.2b - Injections: • investment • government expenditure • exports 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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