Question 15
POST_UTME_IMS_U
•
2022
•
ECONOMICS
•
objective
A country's economy is experiencing a recession. U\sing the concept of opportunity \cost, explain why the government may choose to implement expansionary fiscal policy to stimulate economic growth.
Answer Options
Correct Answer
A.
The government may choose to implement expansionary fiscal policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.
B.
The government may choose to implement contractionary fiscal policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.
C.
The government may choose to implement expansionary monetary policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.
D.
The government may choose to implement contractionary monetary policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.
Correct Answer
A
Correct Option:
The government may choose to implement expansionary fiscal policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.
About This Question
This is
Post Utme Ims U
2022
Economics
Question 15.
It is one of the
objective
questions from the
2022
Post Utme Ims U
Economics
examination.