Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

For a closed economy with no government sector, the full employment level of income = $400 billion and the equilibrium level of income = $380 billion. If the deflationary gap is $4 billion, what is the marginal propensity to consume?

  • A1/5
  • B1/4
  • C3/4
  • D4/5

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