Waec Model Questions Vol1 2021 Economics Question 13
Practice objective / multiple choice question 13 from the 2021 Waec Model Questions Vol1 Economics examination.
In a simple Keynesian model with no crowding‑out, the marginal propensity to consume (MPC) is 0.6. The government raises taxes by an amount equal to 10 % of GDP and at the same time increases public spending by an amount equal to 5 % of GDP. What is the net percentage change in equilibrium output as a proportion of GDP?
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About This Question
This is Waec Model Questions Vol1 2021 Economics Question 13. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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