Gce Model Questions Vol1 2019 Economics Question 46
Practice objective / multiple choice question 46 from the 2019 Gce Model Questions Vol1 Economics examination.
An economy currently has a real GDP per‑capita of \(\$12{,}000\). The government aims to raise real GDP per‑capita by 20 % over the next 5 years. The population is growing at a constant rate of 2 % per year. The Keynesian multiplier is 2.5 and the marginal propensity to save is 0.4. Assuming all other components of aggregate demand remain unchanged, what constant annual increase in autonomous investment (in real terms) is required to achieve the target? Give your answer rounded to the nearest whole unit.
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About This Question
This is Gce Model Questions Vol1 2019 Economics Question 46. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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