Neco Model Questions Vol1 2025 Government Question 3
Practice objective / multiple choice question 3 from the 2025 Neco Model Questions Vol1 Government examination.
Country X imposes a \(10\%\) tariff on steel imports from Country Y. As a result, the volume of steel imports falls by \(15\%\) from its original value of \(\text{₦}20\) billion. Simultaneously, Country X signs a bilateral agreement that raises its agricultural exports to Country Y by \(8\%\) from an initial export value of \(\text{₦}5\) billion. Assume that a reduction in imports has a negative multiplier effect of \(-1.2\) on GDP, while an increase in exports has a positive multiplier effect of \(1.5\). Calculate the net change in Country X's GDP attributable to these two trade actions.
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This is Neco Model Questions Vol1 2025 Government Question 3. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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