From any additional national income, 20% is spent on imports, 25% is paid in taxes, 5% is saved and the rest is spent on domestically produced goods. According to the multiplier effect, if exports increase by $100 million, what will be the final increase in spending by the country's residents on domestically produced goods? A $50 million B $100 million C $200 million D $500 million

Equilibrium income in the economy is the level of national income at which A the economy is producing at full employm...

The table shows the values of selected macroeconomic variables over a period. year 1 year 2 ($m) ($m) investment 200...

The table shows the levels of consumption expenditure and savings for given family incomes.

The diagram shows a notice on a motorway near Cambridge. [Figure 12.1] This road was recently cleared of 17 bags of l...

A reason for government intervention in the workings of the economy is to attempt to correct for market failure. Some...

Which policy combination will reduce income inequalities in a country? A impose a fixed amount tax on all people and ...