Post Utme Elizade University 2018 Economics Question 26
Practice objective / multiple choice question 26 from the 2018 Post Utme Elizade University Economics examination.
Consider a small open economy with a fixed exchange rate. The economy's aggregate demand curve is given by AD = 100 + 0.5Y, where Y is the level of real GDP. The economy's aggregate supply curve is given by AS = 80 + 0.2Y. If the economy is initially at full employment, what will be the effect of a 10% increase in government sp\ending on the level of real GDP?
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About This Question
This is Post Utme Elizade University 2018 Economics Question 26. It is one of the objective questions from the 2018 Post Utme Elizade University Economics examination.
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