A-level Paper 2, June 2022The National and Global Economy

A-level Paper 2, June 2022, Q1(a)

Using the information above, calculate the total reduction in the UK’s GDP from a fall in government spending of £20 million.

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Context

According to the Bank of England, the UK’s marginal propensity to consume is estimated to be 0.64.

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Specification topics

The multiplier

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