Waec Model Questions Vol1 2025 Economics Question 29
Practice objective / multiple choice question 29 from the 2025 Waec Model Questions Vol1 Economics examination.
In an economy the marginal propensity to consume (MPC) is 0.75. The government decides to increase its spending by ₦200 million, but at the same time private consumption falls by ₦50 million because of a tax increase. Assuming no other changes, what is the resulting change in equilibrium GDP?
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About This Question
This is Waec Model Questions Vol1 2025 Economics Question 29. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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