Waec Model Questions Vol1 2019 Economics Question 27
Practice objective / multiple choice question 27 from the 2019 Waec Model Questions Vol1 Economics examination.
A developing country currently has a real GDP of ₦5,000 billion and a population of 20 million. The government aims to raise GDP per capita to ₦300,000 within five years. Population is expected to grow at a constant 2 % per annum. Consumption is given by C = 0.6Y, government spending is fixed at ₦500 billion, and net exports are zero. Investment is the only variable component of aggregate demand. The fiscal multiplier is 1/(1‑MPC) = 2.5. Assuming that the required increase in investment is spread evenly as an equal additional amount each year, determine the average annual increase in investment (in billions of naira) that must be made to achieve the target GDP per capita.
Answer Options
About This Question
This is Waec Model Questions Vol1 2019 Economics Question 27. It is one of the objective questions from the 2019 Waec Model Questions Vol1 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.