How the macroeconomy works: the circular flow of income, AD/AS analysis and related concepts: แบบฝึกหัด

In the circular flow of income model, which of the following represents an injection into the flow?

An economy has a Marginal Propensity to Consume (MPC) of 0.8. If the government increases its spending by £10 billion, what is the final increase in national income, assuming no other changes?

An economy is currently operating at full employment. If the government implements an expansionary fiscal policy by increasing spending without increasing taxes, what is the most likely long-run outcome according to the vertical LRAS model?

Which of the following would most likely cause a rightward shift in an economy's Long-Run Aggregate Supply (LRAS) curve?

In the context of the circular flow of income, if total planned injections (I + G + X) are greater than total planned withdrawals (S + T + M), then:

In a circular flow of income model, if an economy has a marginal propensity to consume (MPC) of \( 0.8 \), calculate the value of the multiplier and state the total increase in national income resulting from an initial injection of \( \pounds 20 \) billion.