Waec Model Questions Vol1 2023 Economics Question 7

The following data relate to the Nigerian economy for the year 2022 (all values are in ₦ billions): - Consumption (C) = 4,500 - Investment (I) = 1,200 - Government expenditure (G) = 1,800 - Exports (X) = 900 - Imports (M) = 1,100 - Net factor income from abroad (NFIA) = 150 - Depreciation (capital consumption allowance) = 800 - Indirect taxes = 600 - Subsidies = 200 Using the above information, answer the following: a) Compute the Gross Domestic Product (GDP) at market price. b) Compute the Gross National Product (GNP) at market price. c) Compute the Net National Product (NNP) at market price. d) Compute the National Income (NI) at factor cost. e) The government is planning to increase exports by ₦300 billion while imports remain unchanged. Discuss qualitatively how this policy would affect each of the aggregates calculated in parts (a)–(d) and the likely impact on aggregate demand and the price level, using the Keynesian framework.