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ScotlandEconomicsQuick questions

UK Economic Activity

Quick questions on National income and the circular flow of income - SQA Higher Economics

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?
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Classify each of the following as an injection or a leakage: (a) exports; (b) saving; (c) government spending; (d) imports. [4 marks]
What is q2?
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Explain what happens to national income when leakages exceed injections. [2 marks]

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