Waec Model Questions Vol1 2019 Economics Question 7

Practice essay / theory question 7 from the 2019 Waec Model Questions Vol1 Economics examination. This question covers National Income .

Waec Model Questions Vol1 2019 Economics Essay / Theory

Topic: National Income

Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • essay

The following macro‑economic data are for Country X for the year ended 2025 (all figures in ₦ billions).

Question Parts

( a )

Using the expenditure approach, calculate the Gross Domestic Product (GDP) at market prices.

( b )

Given that depreciation (capital consumption allowance) is ₦180 bn and net factor income from abroad is ₦70 bn, compute the Net National Product (NNP) at market prices.

( c )

Explain how depreciation and indirect taxes affect the measurement of NNP and why they are deducted.

( d )

Assume the government decides to increase its expenditure by ₦100 bn, financed entirely by borrowing. Using the Keynesian expenditure multiplier, discuss qualitatively the likely impact on equilibrium national income in a closed economy, mentioning any assumptions you make.

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About This Question

This is Waec Model Questions Vol1 2019 Economics Question 7. It is one of the essay questions from the 2019 Waec Model Questions Vol1 Economics examination.

The question covers National Income .

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