Q38 · Practice questionSimple familiar4 marks
QUESTION 38 (4 marks)
Calculate total leakages and injections. Predict the initial pressure on national income, then calculate the export value that would balance these flows if the other values were unchanged.
WORKED SOLUTION
4 marksPractice marking scheme
Answer
Leakages: $460b; injections: $490b; upward pressure on income; exports must be $110b for balance.
Working
S + T + M = 160 + 180 + 120 = 460. I + G + X = 150 + 200 + 140 = 490. The $30 billion excess of injections initially supports expansion. Holding other values fixed, X = 460 − 150 − 200 = $110 billion. This is a static flow condition, not a claim that actual exports must adjust alone.
Marking criteria
- Calculates both flow totals. [2 marks]
- Explains upward pressure on national income. [1 mark]
- Calculates exports of $110 billion. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
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