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EnglandEconomicsQuick questions
Macroeconomics: Aggregate demand, supply and policy
Quick questions on The multiplier and accelerator - Eduqas A-Level Economics (A520)
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is q1?Show answer
In an economy the marginal propensity to save is 0.2, the marginal propensity to tax is 0.2 and the marginal propensity to import is 0.1. Calculate the multiplier. [3 marks]
What is q2?Show answer
Explain why investment tends to be more volatile than consumption over the business cycle. [4 marks]
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