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First Year First Semester Question Paper

First Year First Semester 

Course:Macro Economics

Institution: Moi University question papers

Exam Year:2013



1.Distinguish between the following paired concepts as used in economics a. Precautionary and Speculative demand for money b.Marginal efficiency for capital and marginal efficiency for investment c.Internal rate of return and external rate of return d.The principle of acceletor and multiplier e.Inflationary and Deflationary gaps f.Demand pull and cost pull inflation g. Gross domestic product and gross national product h.Monetary policy and fiscal policy i. Money market and product market 2. J.M Keynes advocated that the level of employment depend on total aggregate demand.Examine and verify the validity of Keynes advocacy when applied in less developed countries b.Discuss the various types of unemployment and suggest hoe Kenya can solve her unemployment problem. 3. What are the basic economic tasks that any economy attempts to solve?To what extent has kenya attempted to solve these tasks. 4. Explain the characteristics and functions of money.




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