Neco 2022 Economics Question 44

Practice objective / multiple choice question 44 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2022 • ECONOMICS • objective

In a closed economy the consumption function is \( C = 150 + 0.75Y_d \) where disposable income \( Y_d = Y - T \) and taxes are proportional: \( T = 0.2Y \). Investment is \( I = 200 \), government spending \( G = 250 \) and net exports are \( NX = 50 - 0.1Y \).\n\n(i) Determine the equilibrium level of national income \( Y \).\n(ii) If autonomous investment rises by ₦100, what is the new equilibrium \( Y \)? Give both answers rounded to the nearest whole number.

Answer Options

A. Initial equilibrium Y = 1350; after investment increase Y = 1550
B. Initial equilibrium Y = 1400; after investment increase Y = 1600
Correct Answer C. Initial equilibrium Y = 1300; after investment increase Y = 1500
D. Initial equilibrium Y = 1250; after investment increase Y = 1450
Correct Answer
C
Correct Option:
Initial equilibrium Y = 1300; after investment increase Y = 1500

About This Question

This is Neco 2022 Economics Question 44. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Medium .

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