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Question 18M.3.HL.TZ0.2g.i

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Date May 2018 Marks available [Maximum mark: 2] Reference code 18M.3.HL.TZ0.2g.i
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number g.i Adapted from N/A
g.i.
[Maximum mark: 2]
18M.3.HL.TZ0.2g.i

The following data relate to Country Beta (all figures are in $ billions).

Table 3

Country Beta is assumed to be a closed economy with no government sector. Consumption in Beta increases by $0.80 for every $1 increase in national income. In the first quarter of 2019, investment rises by $2 billion.

(g.i)

Calculate the maximum possible increase in gross domestic product (GDP) that could result from the rise in investment.

[2]

Markscheme

1 ( 1 − 0.8 ) × 2 = 5 × 2

Any valid working is sufficient for [1].

= $10 billion

An answer of $10 billion or 10 billion is sufficient for [1].

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