SECTION A: MULTIPLE CHOICE QUESTIONS.

Answer ALL Questiins

1. All of the following describes conditions necessary for
existence of a perfect marke EXCEPT
tmarket EXCEPT
A. lack of homogeneity
eneity of goods.
B. large buyers and sellers
C.perfectknowledge
2. given the table demonstrating the law of diminishing
D portability of goods.
below what is the value of X?
A.0 B. 0.5. C.7 D.8
3. Economics is often described as a science because it
A.employs the use of laboratory experiments.
B.engages accurate prediction of human beings
C.makesu use of controlled experiments..
D. uses scientific methods to explain observed
phenomena.
4. When a generalization is made based on observed
A. normative reasoning. B. theoretical reasoning.
C. inductive reasoning. D. deductive rea soning.
5.From the graph below, point "E," shows

A. productive efficiency. B. allocative efficiency.

C. product inefficiency. D. product efticiency.

6.40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per
person. Calculate the total product.
A. 1,100 tonnes B. 1,300 tonnes
C. 1,400 tonnes D. 1,200 tonnes

7. Economists refer to private goods as

A. non rival and non-excludable.
B. rivalrous and excludable. V
C. non rival and excludable.
D. rivalrous and non-excludable.
8.If demand function for a product is Qs=30-4P, and price
and quantity of product is 4 and 14 respectively. What is
the price elasticity of demand for the product?
A. 1.14 B. 1.7 C. 14.1 D.7.1

9. The decision to consume more of one product under

normal circumstances will imply
A. more ofanother product will be consumed.
B. less of the product will be consumed.
C. no other products will be consumed.
D. less ofanother product will be consumed.
10. When a kilogram of carrot is #8.00, 20 kilograms are
demanded and when the price decreased #6.00 n
kilogram, 30 kilograms are demanded. The elasticity of
demand equals to_ C.2. D. h.
A. 11. B. 12.

11. The quantity of commodity a consumer is willing and

able to buy at a particular time is called
A. demand. B. supply.
C.desire. D. wish.
12. Endogenous variable is
A. a variable that is determined inside the model. B. a
variable that is determined outside the model.
C.a variable that is not in the model.
D. a variable that is not part of the theory.

13. Suppose the public expenditure as a percentage of

GDP of four countries is shown in the table below.

which type of economy exists in these countries?

A. Mixed.B. Planned.
C. Pure market. D. Traditional.
14. Which of the following shows why individua
demand curve for a good usually slopes downware
from left to right?
A. More of commodities are offered for sale at a lowes
than higher prices.
B. Prices are usually falling when demand is low.
C. Marginal utility falls as consumption increases.
D. The higher the price the higher the quantity offered
fir sale.
15. Identify one of the following which can NOT be
used to close deflationary gap.
A. Increased governmentexpenditure.
B. Reduction in taxes.
C. Increased money supply.
D. Increased interest rate.
16. Which of the following will cause an increase in
costof production?
A. Hyper-inflation. B. Demand pull inflation.
C.Cost push inflation. D. Structural inflation.
17. Institutions serving as links between surplus and
deficit units can be identified as
A. financial intermediates. B. tax officers.
C.acceptance houses. D. pension offices.
18. Which of these must be avoided in adopting the
income approach to the measurement of national
income?
A.Income earmed by housewives.
B. Indirect taxes. C. Illegal goods and services. D
Transfer payment.
19. Calculate the equilibrium level of national income-
(Y) where Y=C+I+G; C=100 +0.75Y; I = 50; and G
=200
A. 100 B. 1400
C.1500 D.2000
20. A persistent rise in the prices of inputs will lead to
A. hyperinflation. B. stagflation.
C. cost push inflation. D. demand pull inflation.
21. The number of people who are qualified to work
and who offered themselves for employment are
A. migrant labour. B. working population.
C. labour turnover. D. mobility of labour,

22.Overpopulation is caused by.

A. disease. B. emigration.
C. low literacy rates. D. war and conflicts.

23. The quickest way of achieving an economic union

on regional basis is to remove all_
A. currency barriers. B. political barriers.
C.customs barriers. D,. language barriers.
24. Shifts in the consumption curve are caused by all of
the following EXCEPT changes in A. asset
holdings. B. income level.
C.price level expectations. D. credit availability.
25. Which of the following is the resultant effect of a
fall in the profit margin of producers in an economy?
A. Unemployment will increase.
B. Unemployment sill fall.
C. Unemployment will remain constant.
D. Unemployment will fuctuate.
26. Multiplier can be deseribed as_
A. the ratio of change in an endogenous variable to the
change spending.
B. the ratio of change in output to a change
autonomous spending
C. the ratio of variables that multiplies autonomous
spending plus tax.
D. the ratio of variables that multiplies autonomou
spending.
27. Which ofthe following must be true to have a clos
economy with no govemment, and yet the value of u
investment multiplier still increases?
A. Actual saving has fallen.
B. Marginal prpensity to save has fallen.
C.Actual investment has fallen.
D. Average propensity to invest has fallen.

28. Which of the following would not be a reason for a

government to impose a quota on imports?
A. lo support strategic industry.
B. To raise tax revenue.
C. To prevent dumpin8
D. To retaliate against other countries.

29. In a two by two model of international trade, it is

assumed that_
A. both countries could gain from trade at the same
time, but the volume of the gains depends on terms of
trade.
B. both countries could gain from trade at the samne
me, but the volume of the gains does not depend on
ms of trade.
C. both countries could gain from trade at the same
time, but term of trade is inconsequential for the
distribution of the gains.
D. neither country could ever gain from trade since
term of trade depends on the distribution on the gains
from trade

30.Agriculture accounts for about 60% ofthe_

A. active labour force in WestAfrica.
B. arable land in West Africa.
C. service sector activities in West Africa.
D. commodity market in West Africa.

31. Which exchange rate regime is purely determined

by the forces of demand and supply?
A. Fixed exchange rate.
B.Flexible exchange rate.
C. Modified exchange.
D. Principal exchange rate.
32. Which of the following is noted as one of the causes
of poverty in West Africa?
A. Poor manufacturing.
B.Poor leadership.
C. Low crude oil exportation.
D, Low exchange rate fluctuation.
33. Which of the following is NOT one of the
characteristics of developing countries?
A. High capital formation. B. Low saving
C. Mono-product economy.
D. High unemployment.
34. Which one of the following measures the natural
growth rate of a population?
A. Birth rate+ Death rate.
B. Birth+ Net migration =Death.
C. Natural increase= Birth rate + Net migration.
D. Birth rate- Death rate.

35. One of the following is NOT a factor underlying

fluctuations in exchange rates.
A. Bank influence. B. Capital movements.
C.Changes in price. D. Savings.

36. Deliberate attempt to limit imports is called

A. trade protection. B. trade management.
C.export substitution. D. import substitution.

37. Indicator ofunderdevelopment is

A. low per capita income.
B. low population growth rate.
C. high Life expectancy. D. low birth rate.

38. A period of economic stagnation accompanied by

rising inflation can create 3. creeping inflation.
A. hyper-inflation.
C. stagflation. D. depression.

39.The rate of output per worker (or group of workers)

per unit time is called
A. labour productivity. B. total output.
C. work done. D, individual output.
40. The Economic Community of West African States
was established on
A. May 28, 1977. B.August 22, 1977.
C. May 28, 1975. D.August 22, 1975.
41. The economies of West African Countries depend
majorly on_
A. primary product. B. secondary product.
C. tertiary product. D. manufacturing product.
42. Macroeconomics focuses on which of the following
units in an aggregative manner?
A. Individual consumers, individual firms, government
and external sector.
B. Government, household firms, individual
consumers and external sector.
C. Household, firms, government, corporate sector and
external sector.
D. Individual consumer, household firms and
manufacturing sector.
43..An increase in injections into the economy may lead
A. an outward shift of aggregate demand and demand-
pull inflation.
B. an outward shift of aggregate demand and cost-push
inflation.
C. an outward shift of aggregate supply and demand
pull inflation.
D. an outward shift of aggregate supply and cost-pusn
intlation.

44. - is invented to measure the distribution of

income in a country.
A.Demana curve. B. Philips curve.
C.Lorenzcurve. D Supply curve.
45. Which of the following Age group belongs to BCIVe
Labour force?
A.0-17yrs. B.15-25yrs
C.65yTs and above. D.18-64yrs.
46. Classical models of economic growth based their
analysis on the assumption that sOure
A. there is full employment of resources.
5. there in partial utilization of capital.
C.prices and wages arengid downward.
D. the saving ration is low.
47. An increase in nominal income without increase in
price will result to_
A. increased real income. B. decreased real income. C.
incrcased GDP. D. decreased GNP.
48. is NOT the cause of balance of payments (BOPs)
deficits in Nigeria.
A.Poor performance of the non-oilsector
B.No import substitutron stralcgies
C. High servicing of debt
D. Export promolion

49. Which of the following is NOT a member of

ECOWAS?
A. Niger B, Nigeria C. Ghana D. Tunisia
50.If the supply curve of labour market is given as S
4L+8. What is Lwhen s= 20?
A.3 B.2 C.4 D.5
SECTIONB: ESSAY QUESTIONS
Answer FOUR Questions; One from each Course.
ECN 001-PRINCIPLES OF ECONOMICS I
1. Discuss the relationship between elasticity of
demand and total revenue of the seller.
[15 Marks]
2. (a) Explain what is meant by indifference curve and
marginal rate of substitution 18 Marks]
(b) Discuss the basic properties of an indifference
curve [7 Marks]1
ECN 002-PRINCIPLES OFECONOMICS II
3. The economy model of a country is characterized as
follows:
Consumption function, C= 85 + 0.5Yd
Investment function, I=85
Govemment spending, G=60
Net taxes, T=40+0.25Y
Solve for the following:
(a) Equilibrium income (3 Marks]

(b) Equilibrium consumption 3 Marks

(©)Net taxes 3 Marks
(d) What type of budget is the economy operating?
13 Marks
(e) By how much will output increase when investment
spending increases by 50%
13 Marks
4. (a) With the aid of a well labeled diagram, explain the
circular flow of income in a three-sector economy.
18 Marks]
(6) If the income of civil servants earning N75,000 per
month increases by 40% and their consumptio
expenditure consequently increased from N52,000
N65,000 per month
i. Calculate the multiplier 4 Marks
ii. By how much will the national income be incre
if the total consumption expenditure increase d by
N20,000. 4 Marks]

ECNO03-APPLIED EcONOMICS I

5. (a) Explain the term "demographic transition".

I5 Marks]

(b) Discuss the implications of Malthusian population

theory. [10 Marks]

6. (a) Examine the effects of increasing population on

the Nigerian economy. 10 Marks]

(b) How could the trend be curtailed?

5 Marks]

ECN 004-APPLIED EcONOMICsII

7. (a) Using a diagram explain, explain what is meant

by a recesSionary gap? 5Marks

(b) What policies might government use to correct

recessionary gap? [10 Marks]l

8.Use the information below to answer the questions

that follow.

Nigeria Economie Outlook

In 2016, Nigeria's economy slipped into recession for
the first time in more than two decades reflecting
adverse economic shocks, inconsistent economic

Policies, and de -opening security problems in the north east and Delta regions. The outlook for
2017 was for a moderate economic recovery with real Gross Domestic
Product (GDP) projected to grow at 2.2% spurred by
increased infrastructure spending and restoration of oil
production to previous levels.
he Nigerian economy continued to face serious
macroeconomic challenges and was in a recession for
the first time in decades. GDP growth for 2016 was
estimated at -1.5%, with a moderate recovery expectec
This was attributed to a series of shocks.
including the continued decline in oil prices, foreiga
exchange shortages, disruptions in fiuel supply anme
in 2017.
Sharp reduction in oil production, power shortages, ane
insecurity in some parts of the country, as well as lou
capital budget execution rate (51%). Managers of th
economy responded to the recession with a packageo
monetary, fiscal and exchange rate policies
However, the Central Bank of Nigeria (CON) pursued
contractionary monetary poliey stance. The fisc
authority on the other hand pursued an expansiona
fiscal policy with the objective of retlating
economy by allocating close to 30% of the budget
capital expenditure.

Source: African Economic Outlook (AEO) 2017

i. What do you understand by the term economic
recession'? 12 Marks

ii. Will good examples, explain the term "economic

shocks and how they can affect the Nigerian
economy. 2 Marks
ii. With good examples and illustration, explain the
term expansionary fiscal policy and how it can affect an economy. 13 Marks
Iv. Mention 4 macroeconomic objectives that all
governments can pursue. [4Marks
V. Aside from the above, given reasons for economic
recession in Nigeria, explain some other reasons that
Can cause cconomiC recession especialy in west
Africa. [4 Marks|
ECONOMICS
SECTIONA: MULTIPLE CHOICEANSWERS.
1. A=The following characteristies are essential for
the existence of Perfeet Competition:
Large Number of Buyers and Sellers.
Homogeneity of the Product.
Free Entry and Exit of Firms.
Perfect Knowledge of the Market.
Perfect Mobility of the Factors of Production and
Goods.
Absence of Price Control
2.C
3.D = Economics is regarded as a social sciencebecause
it uses scientific methods to build theories that can E
explain the behaviour of individuals, groups and
organisations.
4. C= inductive reasoning moves from specific
instances into a generalized conclusion, while deductive
reasoning moves from generalized principles thate
known to be true to a true and specific conclusion.
5.C
6.D=40x 30=1,200 tonnes.
7.B=A private good is a product that must be purchased to be consumed, and consumption by one
indiidual prevents another individual from consuming it.
Economists refer to private goods as rivalrous and
excludable.
8.A = Qd=30-4p V
Ped-(dOdxP)
ip
Ped-(4x4)

Ped=-(-1.142)
Ped ~1.14
9.D
10.C=The price elasticity of demand is measured by its

coeticient (E)
% chamge in gAg/4.2,2
% change inp 4plp 4p 9

(30-20/6-8) x (8/20)= (10/-2)x (8/20)

=-2 or>1
This shows elastic demand or elasticity of demand
greater than unitary.
11. A Quantity demanded is the quantity of a
commodity that people arewilling to buy at a particular
price at a particular point of fime.

12.A

13. A Mixed economy as the remaining percentage

constitute private expenditure as percentage of GDP
14.A

15. D = A deflationary gap is also known as a negative

15. D= A deflationary gap is also known as a negative
output gap. Fall in consumer spending (e.g. higher
interest rates, falling wages.)
16. C =Cost push inflation is inflation caused by an
increase in prices of inputs like labour, raw material, etc.
The increased price of the factors of production leads to
adecreased supply ofthese goods.
17. A=A financial intermediary is an institution that
facilitates the flow of funds between individuals or other economic entities having a surplus of
funds (savers) to those running a deficit of funds (borrowers). Banks are a classic example of
financial institutions.
18. D When we use the income method we have to
exclude all transfer incomes such as unemployment
benefit, widow pension, child benefits or even interest on government bonds. These are transfer
incomes since they are not payments for services rendered-there is no contribution to current real
output by the recipients.
9.B=

Y=C+I+G
Y=100+0.75Y + 50 +200
Y=350 +0.75Y
Y-0.75Y=350
0.25Y=350
Y=350/0.25 = 1,400
20.C see question 16.
21. B= Working population refers to the number St
people who are willing and eligible to work.
22. C = Illiterate people will be less likely to know wha
they may need to know about contraception. And they a
less likely to be able to afford contraception.
24. B =Changes in disposable personal income cause
23.C
movements along this curve; they do not shift the cuve
The curve shifts when other determinants of
consumptionchange. Examples of changes that could
shift the consumption function are changes in real wealth and changes in expectations.
25.A
26. B=The spending multiplier is defined as the ratio of
thechange in GDP (∆Y) to the change in autonomous
expenditure (∆AE).
27. B =Decrease in MPS signifies increase in marginal
propensity to consume. This is necessary condition for
significant multiplier effect ofN1 increase in investment
28.B
29.A
30.A =West Africa has an abundance of natural and human resources, yet remains one of the
poorest regions in the world. Representing approximately 35 percent of the region's GDP and 60
percent of the active labor force, the agriculture sector is committed to achieving food security and
broad-based economic growth in West Africa.
31. B A flexible exchange-rate system is a monetary
system that allows the exchange rate to be determined
supply and demand.

32. B=Poverty in Africa is caused by a number of factol

The leading causes are corruption and poor governan ce
limited employment opportunities, poor infrastructu
ture
poor resource usage, wars and unending conflictsS, p
World Bank and IMF policies, among others.
33.A
34.C
35.D

6 A-Trade protection is the deliberate attempt to

it imports or promote exports by putting up barriers to
trade
37.A
38. C=Stagflation is a condition of slow economic
growth and relatively high unemployment, or economic
stagnation, accompanied by rising prices, or inflation. It
can also be defined as inflation and a decline in gross
domestic product (GDP)
39.D=This is also called average product. The formula
for obtaining output per labour
40. Economic Community of West African States (ECO
WAS) was established on May 28 1975 via the
city of Lagos.
41. A=The economies of West African Countries depend major on natural resources and primary
products.
42.C
43. A An increase in injections leads to an increase in
aggregate demand.
44.C=The distribution of income within a society may
be represented by the Lorenz curve. The Lorenz curve is
closely associated with measures of income inequality,
such as the Gini coefficient.
45. D= The working-age population in a region consists
Or those in a range of ages, typically 18-64 or 15-64,
Considered able and likely to work.
46. A = Classical economist believe in zero idle
resources,

47.A
48.D
49.D
responsiveness of quantity demanded to a change in
price. The law of demand says that when price falls
(rises), quantity demanded increases (decreases).
i. When the quantity increase (or decrease) is greater V
than fall (rise) in price, elasticity of demand is greater
than 1. Hence, high responsiveness of demand to change
in price.
ii. When the quantity increase (decrease) is equal to fall
(rise) in price, elasticity of demand is equal to 1. Hence
responsiveness of demand is moderate to change in price
ii. When the quantity increase (decrease) is less tlah fal
rise) in price, elasticity of demand is less than 1. Hence
responsiveness of demand is low to change in price.
We know, Revenue = Price (P) * Quantity (Q). Now for
producer the most favourable situation is the as one
when the consumers (demanders) have no optionbut to
decrease the quantity consumed by not much when price is increased.
2. (a) An indifference curve is a graph showing
combination of two goods that give the consumer equal satisfaction and utility. Each point on an
indifference curve indicates that a consumer is indifferent between the two and all points give him
the same utility.
The marginal rate of substitution (MRS) is the rate at
which a consumer can give up some amount of one good in exchange for another good while
maintaining the same level of utility. At equilibrium consumption levels (assuming no
externalities), marginal rates of
substitution are identical. The marginal rate of
substitution is one of the three factors from marginal
productivity, the others being marginal rates of
transformation and marginal productivity of a factor.
(b)Properties of Indifference Curve
I. Downward Sloping: An indifference curve slope
downward, which means, that with the more
consumption of one good the consumption of the other is to be reduced to maintain the
utility.Here, the principle of the marginal rate of substitution (MRS) applies, which means the
increased consumption of one commodity is to be set off by the reduced consumption of another
commodity, so as to have the same level of satisfaction or utility. Thus, the indifference curve is
negatively sloped.

ii. Convex to the Origin: The indifference curves are

convex to the origin because of the diminishing marginal
rate of substitution. The MRS diminishes because of the
decline in the marginal utility, which means with more
and more consumption of one commodity, the customer's
utility starts declining and he is not willing to consume it
more at the cost of the other commodity. For example,
let's say there are two chocolates, dairy milk, and Nestle,
with more and more consumption of dairy milk
chocolates the utility continues to decline, and the
customer will no more give up the Nestle chocolates to
buy the dairy milk. Here, MRS shows the slope of the
indifference curve.
l. Higher the indifference curve, the higher is the
level of satisfaction: The consumer derives more
satisfaction from the combination of two goods on a
higher indifference curve because more units of both
the commodities are used that will srely be more
satisfying than the lower quantity combinations.

iv. Cannot Intersect or be tangent to eacn ouner:

indifference curves cannot intersect with each other,
because if it does so, then the combinations of two
commodities lying on two different curves will yield O
same level of satisfaction which is not correct.
Thus, it is clear from the properties of the indifferenc
curve that the customer realizes an equal satisfaction
and the utility from the use of different combinations O
two commodities.
ECN 002- PRINCIPLES OF ECONOMICS II O

The above diagram shows the reciprocal flow of incom

in a 3 sector economy.
The firms, which are the producing unit, employ factor
of production (Land, labour, capital and entrepreneu
and reward factors accordingly (rent, wages, interest rat
and profit). In return, firm supply household gords an
services and earn income from household.
Government represents the regulatory body in a thr O
sector economy. As such, both Household and firmp
tax to the government to execute fiscal responsibil
(recurrent and capital expenditure).
Also, firm supply goods and services to government
earn income and meet the needs of the regulatory body.
Original Income=75,00
ECN 003- APPLIED ECONOMICS
5. (a) Demographic transition expresses a paradigm shift in demographic structure of a country
from high birth and infant death rate to low birth and infant death rate as abresult of the adoption
of technology, modern education and implementation of economic development programmes.
(b) Implication of Malthusian Population Theory
Thomas Robert Malthus expressed that an uncontrolled
population would result in a situation whereby
population grows faster than the available resources of a country. According to him, the major
preventive check
on population growth is birth control. However, he
proposed two measures through which a country can
effectively check population growth.
i. Preventive checks
ii. Positive checks
Preventive checks are voluntary actions people can adopt to reduce population growth.
Positive checks are activities that naturally shorten the
average life span of people.
The preventive checks include the use of contraceptives, delaying marriage till certain age, mutual
agreement not to give birth above certain threshold etc.
This approach is more applicable to the advance world as cultural beliefs in the less developed
world (especially Africa) usually confront this approach with serious resistance.
hepaste cheo te other hand is disastrous but it is
applicable to all forms of system (Developed,
Developing or Underdeveloped). Positive checks
include outbreak of diseases, death, etc.
Irespective of the nature of checks, Malthus theory
expresses that the excess of population growth over
available resources may result in high poverty rate, high
unemployment rate and high inequality in income
distribution.
6.(a)
I. High population reduces per capita income.
Per capita income is simply the ratio of Gross National
Product of population. This can
be expressed as: = GNP/ Population

Increase in population would automatically

reduce per capita income of Nigeria.
i. High population will increase capital and
recurrent expenditure of the government. High
population signifies intensity in the use of social
intrastructure. As such, government's expenditure across all levels is bound to increase.
High population result in high unemployment.
High population would always create the problem of
unemployment as absorption capacity of every economy
is limited.
iv. increase in SoCial vices Uncontrolled population portends a great threat to security of every
economy. This is evident from recents attacks in the North East and some other parts of the
country
6.(b) i. Enforcement of birth control policy

ii. Enforcement of effective immigration conh

policy
ii. Promotion of effective education across all tribe
and culture
iv. Creation of jobs to engage idle hands

ECN004-APPLIED ECONOMICSII
7.(a)
National Income
Line AD - Y represents equilibrium national Incom
Point (a-b) represents recessionary gap as AD' is below
full employment level of income.
7.(b)
i. Expansionary fiscal policy
This involves increase in govenment
ii. spending (deficit budget) and reduction in tax
Expansionary monetary poliC
This involves reduction in monetary poll)
rate, reserve requirements and bank lendimg
rate.
8. i. Economic recession is an expression of down tu
(decline) in business cycle of an economy. This is
outcome of consecutive negative GDP of a country
two quartile
ii. Economic shock is a term used in describi
unexpected activities that affect macro and
macroeconomic variables positively or negatively
typical example is global oil price shock of 2014. In June 2014, crude oil price (Brent) fell from
$112/barrel to $48/barrel
This drastically affect fiscal responsibility of Federal
548/barrel.
government of Nigeria as revenue from oil, which
constitute over 75% of foreign exchange earmings of the federal government fell accordingly.
l. Expansionary fiscal policy involves deliberate action
of the federal government to inject liquidity (money) into the economy. These include:
(a) Reduction of personal and corporate taxX
b) Execution of deficit budget (i.e government spending greater than govemment earnings in a
fiscal year.
expansionary fiscal promotes investment and
provision or requisite infrastructural facilities essential
for creating Conducive business environment and
promotion of general welfare
IV. MacroecOnomic objectives all governments Can
pursue
i.Price stability
ii. Low unemployment rate
iii. Favourable balance of payment
iv. Output growth.
V. The followings are the reasons for economic recession
in Nigeria. High inflation rates.
High interest rates
High external and internal debts
iv. High unemployment rate

High Inflation rate

The nature of inflation in Nigeria is cost push. The
producer usually transfer high cost of production to
Nigerians in form of high price. This constitute the major factor to recession in Nigeria as
purchasing power of the people is impaired vis a vis aggregate demand.
High interest rate
The persistence increase in interest rate discourages
actual and potential investors in the country. This is
responsible for low investment and low output that
eventually drag the economy into recession.
High external and internal debts
High debt profile signifies high debts repayment. The
country lacks the requisite funds to implement basic-
fiscal responsibilities as large chunk of her budget goes into debt settlement.
aggregate demand of the populace. The output
aggregate demand gap led Nigeria into recession.