Post Utme Bowen University 2018 Economics Question 10

Practice objective / multiple choice question 10 from the 2018 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2018 Economics Objective / Multiple Choice
Question 10 POST_UTME_BOWEN_UNIVERSITY • 2018 • ECONOMICS • objective

A country is experiencing a recession. The government has introduced a fiscal policy package to stimulate economic growth. The package includes a cut in income tax rates and an increase in government sp\ending. What is the likely effect of this policy on the economy?

Answer Options

Correct Answer A. The policy will lead to an increase in aggregate demand and an increase in economic growth.
B. The policy will lead to a decrease in aggregate demand and a decrease in economic growth.
C. The policy will have no effect on aggregate demand and economic growth.
D. The policy will lead to an increase in aggregate demand and a decrease in economic growth.
Correct Answer
A
Correct Option:
The policy will lead to an increase in aggregate demand and an increase in economic growth.

About This Question

This is Post Utme Bowen University 2018 Economics Question 10. It is one of the objective questions from the 2018 Post Utme Bowen University Economics examination.

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