Gce Model Questions Vol1 2025 Government Question 6
Practice objective / multiple choice question 6 from the 2025 Gce Model Questions Vol1 Government examination.
Country A imposes economic sanctions that cut Country B's exports to A by \(30\%\). For each \(1\%\) reduction in exports, Country B's annual GDP growth rate falls by \(0.02\) percentage points. Simultaneously, Country A provides military aid equal to \(2\%\) of Country B's GDP. Each \(1\%\) of aid raises Country B's security index by \(0.2\), and each \(0.1\) increase in the security index raises GDP growth by \(0.05\) percentage points. Assuming no other changes, what is the net change (in percentage points) in Country B's annual GDP growth rate due to the combined sanctions and aid?
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This is Gce Model Questions Vol1 2025 Government Question 6. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Government examination.
Difficulty level: Hard .
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