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WAEC Economics 2022 Objective — Question 40

Question 40 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

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Fiscal policy measures imply a change in

  • A. only taxation to control aggregate demand
  • B. bank rates to influence lending
  • C. only government expenditure to regulate an economy
  • D. government revenue and expenditure to regulate an economyCorrect

Explanation

Fiscal policy involves the use of government revenue (taxation) and expenditure to regulate/influence the economy — not taxation or expenditure alone.

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