Waec Model Questions Vol1 2024 Economics Question 21
Practice objective / multiple choice question 21 from the 2024 Waec Model Questions Vol1 Economics examination.
In a developing country the real GDP in year 0 is ₦1,000 billion. The economy grows at a natural rate of 5% per annum and its population grows at 2% per annum. Investment accounts for 20% of GDP and the government decides to increase investment by 10% (i.e., a 10% rise in the amount of investment). The investment multiplier is 2.5. Assuming the multiplier effect operates in the same year, what is the percentage increase in per‑capita real income for that year?
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This is Waec Model Questions Vol1 2024 Economics Question 21. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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