Cambridge International (CAIE) · 4 The macroeconomy (AS) · 4.2 Introduction to the circular flow of income

Cambridge International (CAIE) Economics past paper questions: Introduction to the circular flow of income

Every Cambridge International (CAIE) question on Introduction to the circular flow of income from 2023 to 2025: 2 essays and 5 multiple choice questions. It covers 4.3 Aggregate demand and aggregate supply analysis and 4.4 Economic growth. Each question links to its paper, mark scheme and examiner report.

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Subtopics4.3 Aggregate demand and aggregate supply analysis 14.4 Economic growth 1

Essay questions on introduction to the circular flow of income

Multiple choice questions

  1. AS Paper 1, November 2025, Q15

    What is an example of an injection into the circular flow of income in an open economy?

  2. AS Paper 1, June 2025, Q17

    Based on the circular flow of income, which condition is necessary for an open economy to be in equilibrium?

  3. AS Paper 1, March 2024, Q17

    According to the circular flow of income, what would be the immediate result of an increase in the value of a country’s exports?

  4. AS Paper 1, June 2023, Q21

    The diagram shows a basic two-sector circular flow of income. What can be concluded about the direction of flows?

  5. AS Paper 1, March 2023, Q18

    Which statement about the circular flow of income is correct?

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.