5 marksBasic Keynesian Models
CAPE Economics Unit 2 · 2007 · Paper 2 · Question 2(d)
Explain the relationship between 'saving' and 'investment'.
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Practise this questionOther parts of this question
- 2(a)State four major determinants of aggregate demand.[8 marks]
- 2(b)State four major determinants of aggregate supply.[8 marks]
- 2(c)Discuss three factors that account for the volatility of investment.[9 marks]
- 2(e)Using the standard Keynesian 45° diagram, explain the difference between inflationary and recessionary gaps.[20 marks]
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