QUESTION ONE COMPULSORY
a)Define the following terms:
a) The multiplier (3 marks)
b) Inflation (3 marks)
c) GNP (3 marks)
d) Labor force (3 marks)
e) GDP (3 marks)
b) Distinguish using appropriate diagrams the LM and the IS curves (5 marks)
c) Discuss the effectiveness of fiscal and monetary policies (5 marks)
d) Compare and contrast the classical and Keynes theories of employment (5 marks)
QUESTION TWO
a) Using appropriate diagrams, demonstrate how equilibrium is achieved in the product and the money market respectively (12 marks)
b) examine any five (5) problems that one may encounter in the measurement of National Income (8 marks)

 

 

 

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