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

Aggregate demand and aggregate supply — practice question

The diagram illustrates how consumption expenditure and income are related. Which statement is correct?

  • AThe average propensity to consume is falling.
  • BThe average propensity to consume is rising.
  • CThe marginal propensity to consume is rising.
  • DThe marginal propensity to consume is falling.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI