Paper 2 · June 2009 · National Income and Economic Growth
According to the table of Zimbabwe's national income data for 1980 to 1990, as Net Government Current Expenditure rose over the period, GDP...
Aremained unchanged, indicating no relationship between the two.
Brose only in years when Net Exports were positive.
Calso rose, indicating a positive relationship between the two.
Dfell, indicating a negative relationship between the two.
Explanation
The table shows Net Government Current Expenditure and GDP moving together over 1980 to 1990: as government current expenditure rose, GDP rose alongside it, a positive relationship consistent with government spending contributing directly to national output.
Derived from ZIMSEC Economics Paper 2, June 2009, Section B Q2