Post Utme Abu 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Abu Economics examination.

Post Utme Abu 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_ABU • 2023 • ECONOMICS • objective

A country is experiencing a recession, and the government wants to implement a fiscal policy to stimulate economic growth. The government can either increase government sp\ending or cut taxes. If the government increases government sp\ending by ₦1,000,000,000, what is the expected effect on the aggregate demand?

Answer Options

Correct Answer A. Increase in aggregate demand
B. Decrease in aggregate demand
C. No change in aggregate demand
D. Uncertain effect on aggregate demand
Correct Answer
A
Correct Option:
Increase in aggregate demand

About This Question

This is Post Utme Abu 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Abu Economics examination.

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