Neco Model Questions Vol1 2025 Economics Question 36
Practice objective / multiple choice question 36 from the 2025 Neco Model Questions Vol1 Economics examination.
Country A has a current real GDP of \(\text{₦}2.5\) trillion and a population of \(50\) million. Inflation is \(6\%\) per year. The government is considering two policies for the next five years: Policy X: real GDP grows at \(4\%\) per year. Inflation falls to \(4\%\) after the first two years and then to \(3\%\) for the remaining years. Policy Y: real GDP grows at \(5\%\) per year and inflation remains at \(6\%\) throughout. Population grows at \(2\%\) per year under both policies. Assuming nominal GDP each year equals real GDP multiplied by \((1+\text{inflation rate})\) for that year, which policy yields a higher nominal per‑capita GDP after five years? State the policy (Policy X or Policy Y).
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About This Question
This is Neco Model Questions Vol1 2025 Economics Question 36. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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