passwella.
Menu

JAMB Economics 2005 Question 49

Question 49

Public Finance

If government increases its expenditure on public works, the desired effect is

  1. A.a reduction in the use of capital equipment
  2. B.an increase in the level of emploment
  3. C.an increase in the level of inflation
  4. D.an increase in the use of capital equipment
Show the answer and explanation

Answer: B (an increase in the level of emploment)

Explanation

Public works such as roads and buildings create jobs, so the aim is to raise employment.