Neco 2020 Economics Question 48
Practice objective / multiple choice question 48 from the 2020 Neco Economics examination.
Country X has a current poverty rate of 30%. The elasticity of the poverty rate with respect to real GNI per capita is -0.5. Inflation is expected to be 8% over the next year. The government aims to reduce the poverty rate to 25% within one year. Assuming the relationship \( \%\Delta P = \text{elasticity}\times \%\Delta GNI_{real} \) holds, what nominal percentage increase in GNI per capita is required to achieve this target? Express your answer as a percentage rounded to the nearest whole percent.
Answer Options
About This Question
This is Neco 2020 Economics Question 48. It is one of the objective questions from the 2020 Neco Economics examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.