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    notes on macroeconomics

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    notes on macroeconomics

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    21 views3 pages

    Principles of Economics, Macro

    Uploaded by

    niovaley
    notes on macroeconomics

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 3
    a NTITUTS oF OANA STONE PU. WX 149 Lego RBFERENOR LIBRaRe INSTITUTE OF PROFESSIONAL STUDIE: S (IPS), LEGON DEGREE PROGRAMME END OF SECOND SEMESTER EXAMINATIONS- 2006/2007 LEVEL 200 PBMK 214; PBAC 214 & PBBA 214: PRINCIPLES OF ECONO: (MACRO) MICS Date: 21°" May, 2007 TIME ALLOWED: 2 HOURS, 30 MIN. Answer question one (1) in Section A and two (2) other questions in Section B ECTION A G0 Marks) (Answer All Questions in this S 1. (a) (i) Define national income and explain with the aid of appropriate diagram(s) that the thre approaches of measuring the national income yield identical results. (10 Marks) Gi) Distinguish between Gross National Product (GNP) and Gross Domestic Product (GDF and explain the importance of your distinction. (6 Marks) (b) Given the following macroeconomic model of an open economy: Y=C+I1+G+X-M C=Co+eYd Yd=Y-T T=tY I= lo+aY G=Go X= Xo M = Mo + mY (i) Derive expression for the equilibrium national income (ii) Write out the associated multiplier (ii) Comment exhaustively on the components of the multiplier (income identity) (Consumption function) (Disposable income) (Tax function) (Investment function) (Government spending) (Exports) (Imports function) (4 Marks) (2 Marks) (8 Marks) AY = SECieeB (20 Marks Each) Answer Any Two (2) Ques ch ions from this Ses 2. (a) Compare the effects of fiscal and monetary policy changes on five (5) essential macroeconomic variables un der the Classical and Keynesian aggregate supply (AS) curves Comment on the relevant policy implications for your country. (15 Marks) (b) Explain with the relevant illustration(s) how the problem of double or multiple counting

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