Post Utme Uniosun 2020 Economics Question 13

Practice objective / multiple choice question 13 from the 2020 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2020 Economics Objective / Multiple Choice
Question 13 POST_UTME_UNIOSUN • 2020 • ECONOMICS • objective

The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) and a 5% increase in the income tax rate. What is the likely effect of this policy on the aggregate demand curve?

Answer Options

A. The aggregate demand curve will shift to the left
Correct Answer B. The aggregate demand curve will shift to the right
C. The aggregate demand curve will remain the same
D. The aggregate demand curve will shift downwards
Correct Answer
B
Correct Option:
The aggregate demand curve will shift to the right

About This Question

This is Post Utme Uniosun 2020 Economics Question 13. It is one of the objective questions from the 2020 Post Utme Uniosun Economics examination.

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