1. (a) The following information is provided for a certain economy.
C = 100 + 0.1Y – Consumption function
I = 70 – 10r – Investment function
G = 200 – Government expenditure
X = 320 – Exports
T = 30 + 0.2 y – Tax function
M = 20+ 0.4y – Import function
Md = 0.4Y – 0.1 r – Money demand function
Ms= 400 – Money supply
Required:
(i) Explain the meaning of IS and LM curves. [2 marks]
(ii) Derive the IS and LM equations. [6 marks]
(iii) Calculate the equilibrium income and interest rate. [4 marks]
(iv) Determine the equilibrium consumption [3 marks]

(b) Explain the main uses in measuring National income. [6 marks]

(c) Discuss the main determinants of investment. [9 marks]

2. (a) Using a well labeled diagram describe the circular flow of income in an open economy. [10 marks]

(b) Explain the features of prosperity phase of business cycle. [10 marks]

 

 

 

 

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The setting of this assignment is that you have been asked by a client to inspect a property they are considering purchasing. They require you to examine the property, identify and assess any faults that are present and provide a written report detailing a description of the property (including materials), faults and recommended remedial repairs. There are four separate tasks to be undertaken for the assignment as follows; 1. Building inspection: Each student must undertake an inspection of their home and provide a description of their inspection process, e.g. sequence and mode of inspection, overall impressions, observations, any tools or equipment used to carry out the inspection, time and date etc. 2. Building description: You are required to provide a detailed description of the building including the materials used. This should cover everything from the foundations to the roof and also any other building(s) on the land parcel such as sheds, garages and so on. (Remember to think about the structure of your report and the client’s experience when reading it.) See page 2. 3. Building condition: For each component / part of the building you must identify: The condition of the building and materials. Include in this section likely causes of any faults you see. For example; you may find some rotting timber and may note that a lack of regular painting (maintenance) may be the cause. Here’s a tip: if you set out a table categorising a grading system you can then use it to rank all parts on a table and show defect causality. For example; ‘excellent condition-no visible defect’ might rank as ‘A’, and so on. You may research some examples of building condition surveys/reports to give you some further ideas. 4. Land / site description: Provide a brief description of the site including the topography, building coverage, and the ability to extend and or provide additions to the property. 5. Recommendations: Here is where you must provide recommendations to your client about the property they are considering to purchase with particular attention to any substantial defects to the property. Assessment criteria: As a guide, consider the following; • Coherent structure to report. * Rational method of undertaking the building inspection. • Accurate assessment of building condition * Clear descriptions throughout report. • Accurate descriptions of construction methods and materials Length: Maximum of 2,500 words / Max of 20 pages. Note: NB: As this is a report and not an essay there will be, by necessity, fewer citations than is usually required (but there will be some). Ensure you cite all assumptions, references and sources using the Harvard referencing system.

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