Post Utme Uniport 2019 Economics Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

The government of a country decides to implement a policy of reducing the budget deficit by increa\sing taxes. However, this policy has an unint\ended consequence of reducing the overall demand for goods and services in the economy. What is the likely effect of this policy on the country's GDP?

Answer Options

A. The GDP will increase due to the increase in tax revenue.
Correct Answer B. The GDP will decrease due to the reduction in demand for goods and services.
C. The GDP will remain unchanged as the increase in tax revenue is offset by the reduction in demand.
D. The GDP will increase due to the increase in government sp\ending.
Correct Answer
B
Correct Option:
The GDP will decrease due to the reduction in demand for goods and services.

About This Question

This is Post Utme Uniport 2019 Economics Question 11. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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