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4 marksInvestment

CAPE Economics Unit 2 · 2016 · Paper 2 · Question 1(c)(ii)

Using the information in Table 1, graph the investment demand curve.

This question uses a figure or table from the paper — you'll see it when you practise.

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Other parts of this question

  1. 1(a)(i)Define the term 'equilibrium level of output'.[2 marks]
  2. 1(a)(ii)Outline TWO factors that could account for the volatility of investment spending.[4 marks]
  3. 1(b)Differentiate between the 'investment curve' and the 'investment demand curve' for an economy.[4 marks]
  4. 1(c)(i)Explain why the information in Table 1 essentially describes an investment demand curve.[3 marks]
  5. 1(d)Discuss TWO ways in which businesses adjust their level of inventory investment if the level of GDP is in disequilibrium.[8 marks]

More practice: the rest of this paper · more Investment questions · all CAPE Economics Unit 2 past papers