Economics 9708 · AS & A Level · Aggregate demand and aggregate supply

Aggregate demand and aggregate supply — practice question

Which change would represent a rise in leakages, or withdrawals, from the circular flow of income?

  • Aincrease in government spending on anti-smoking campaigns
  • Bincrease in spending on imports of luxury cars
  • Cincrease in spending on transfer payments
  • Dincrease in wages paid to government employees

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