Post Utme Greenfield University 2023 Economics Question 19

Practice objective / multiple choice question 19 from the 2023 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2023 Economics Objective / Multiple Choice
Question 19 POST_UTME_GREENFIELD_UNIVERSITY • 2023 • ECONOMICS • objective

A government may use fiscal policy to reduce unemployment by increa\sing government exp\enditure. What are the two main channels through which this increase in government exp\enditure affects aggregate demand?

Answer Options

Correct Answer A. Multiplier effect and income effect
B. Multiplier effect and substitution effect
C. Income effect and substitution effect
D. Multiplier effect and crowding out effect
Correct Answer
A
Correct Option:
Multiplier effect and income effect

About This Question

This is Post Utme Greenfield University 2023 Economics Question 19. It is one of the objective questions from the 2023 Post Utme Greenfield University Economics examination.

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