Post Utme Rhema University 2025 Economics Question 4

Practice objective / multiple choice question 4 from the 2025 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2025 Economics Objective / Multiple Choice
Question 4 POST_UTME_RHEMA_UNIVERSITY • 2025 • ECONOMICS • objective

A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption increases by 5%, investment decreases by 10%, government sp\ending remains cons\tant, exports increase by 15%, and imports decrease by 10%, what is the new GDP?

Answer Options

Correct Answer A. \( \text{New GDP} = 0.05C - 0.10I + 0.15X - 0.10M \)
B. \( \text{New GDP} = 0.05C + 0.10I + 0.15X - 0.10M \)
C. \( \text{New GDP} = 0.05C - 0.10I + 0.15X - 0.10M \times 100 \)
D. \( \text{New GDP} = 0.05C + 0.10I + 0.15X - 0.10M \times 100 \)
Correct Answer
A
Correct Option:
\( \text{New GDP} = 0.05C - 0.10I + 0.15X - 0.10M \)

About This Question

This is Post Utme Rhema University 2025 Economics Question 4. It is one of the objective questions from the 2025 Post Utme Rhema University Economics examination.

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