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WAEC Economics 1995 Question 11

Question 11

National Income

Government can influence aggregate demand through all the following measures except

  1. A.reduction in personal income tax
  2. B.retirement of directors-general in the public service
  3. C.creation of employment opportunities
  4. D.compulsory deductions from salaries of all categories of workers
  5. E.upward revision of workers' fringe benefits
Show the answer and explanation

Answer: B (retirement of directors-general in the public service)

Explanation

Taxes, jobs, deductions and fringe benefits change people's spending power; retiring a few directors-general does not.