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A-LevelEconomicsAggregate Demand and Aggregate SupplyFeb/Mar 2017Paper 3 Q241 Mark

In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All savings are carried out by consumers, who save 25% of any income received above $2000 million. Businesses plan to invest $2000 million.

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The correct answer is . This question tests the candidate's understanding of aggregate demand and aggregate supply within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2017 examination, Paper 3 Variant 2. It tests the topic of Aggregate Demand and Aggregate Supply and is worth 1 mark.

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