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2.4 National Income
Question Paper
Course Edexcel A Level Economics A
Section 2. The UK Economy – Performance & Policies
Topic 2.4 National Income
Difficulty Medium
Time allowed: 90
Score: /73
Percentage: /100
Page 1 of 12
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Question 1a
The planned investment in the redevelopment of Dover Port will cost £115 million. The Chief Executive said it will lead to many
‘new job opportunities for local people and a transformed waterfront experience’ with new cafés, bars, and shops.
(Source adapted from: https://www.kentonline.co.uk/dover/news/docklands‑redevelopment‑work‑to‑start‑118581/)
(a)
If the value of the multiplier is 8, which one of the following will be the total increase in GDP from the redevelopment,
assuming other things are equal?
A. £64 million
B. £115 million
C. £207 million
D. £230 million
[1 mark]
Question 1b
(b)
Using the example above, explain how the multiplier process leads to an increase in aggregate demand.
[4 marks]
Page 2 of 12
© 2015-2023 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
2.4 National Income
Question Paper
Course Edexcel A Level Economics A
Section 2. The UK Economy – Performance & Policies
Topic 2.4 National Income
Difficulty Medium
Time allowed: 90
Score: /73
Percentage: /100
Page 1 of 12
© 2015-2023 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
, Head to savemyexams.co.uk for more awesome resources
Question 1a
The planned investment in the redevelopment of Dover Port will cost £115 million. The Chief Executive said it will lead to many
‘new job opportunities for local people and a transformed waterfront experience’ with new cafés, bars, and shops.
(Source adapted from: https://www.kentonline.co.uk/dover/news/docklands‑redevelopment‑work‑to‑start‑118581/)
(a)
If the value of the multiplier is 8, which one of the following will be the total increase in GDP from the redevelopment,
assuming other things are equal?
A. £64 million
B. £115 million
C. £207 million
D. £230 million
[1 mark]
Question 1b
(b)
Using the example above, explain how the multiplier process leads to an increase in aggregate demand.
[4 marks]
Page 2 of 12
© 2015-2023 Save My Exams, Ltd. · Revision Notes, Topic Questions, Past Papers
