AS Paper 2, June 2016The UK Economy – Performance and Policies
AS Paper 2, June 2016, Q5(a)
Using the information above, calculate the total increase in national income, resulting from the £15 billion investment.
Short answerCalculate3 marks
Context
In 2014 the Bank of England estimated the marginal propensity to consume of UK consumers to be 0.5. In 2014 the Chancellor of the Exchequer announced a £15 billion investment programme into UK road infrastructure.