Gce Model Questions Vol1 2019 Economics Question 10
Practice objective / multiple choice question 10 from the 2019 Gce Model Questions Vol1 Economics examination.
In a closed economy with no net exports, consumption is \( C = 100 + 0.8(Y - T) \) where the tax rate is \( t = 0.25 \) so that \( T = tY \). Investment is autonomous at ₦150 million and government spending is ₦200 million. (a) Determine the equilibrium level of output. (b) If the government raises spending by ₦50 million and simultaneously increases taxes by ₦30 million, what is the new equilibrium output and the change in output?
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About This Question
This is Gce Model Questions Vol1 2019 Economics Question 10. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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