To what extent do you agree that a fall in savings is beneficial for the UK economy? Justify your answer.
2.2.3 Determinants of AD · 2.2.1 The Circular Flow of Income
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2 questions on The Circular Flow of Income (AQA specification 2.2.1) from the A-Level Economics papers, 2019–2021. Every question links to the official mark scheme at the page its answer begins on.
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To what extent do you agree that a fall in savings is beneficial for the UK economy? Justify your answer.
2.2.3 Determinants of AD · 2.2.1 The Circular Flow of Income
Extract B (lines 8–9) states ‘If injections into an economy’s circular flow of income increase, then this may generate multiple increases in GDP.’ With the help of a diagram, explain how an increase in injections may generate multiple increases in an economy’s GDP.
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