Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Within a closed economy with no government, consumption is 4/5 of income at all income levels. The current equilibrium income is $220 million. The full employment income is $240 million. By how much must investment rise to achieve full employment?

  • A$2 million
  • B$4 million
  • C$16 million
  • D$20 million

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