Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Four students are required to fill in a table that sets out the aggregate demand equation and the multiplier formula for a closed economy with no government. Which student is correct?

  • Aaggregate demand: C + I; multiplier: marginal propensity to consume / 1
  • Baggregate demand: C + I; multiplier: marginal propensity to save / 1
  • Caggregate demand: C + I - S; multiplier: marginal propensity to consume / 1
  • Daggregate demand: C + I - S; multiplier: marginal propensity to save / 1

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