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Introduction To Macroeconomics Question Paper

Introduction To Macroeconomics

Course:Bachelor Of Business Management

Institution: Mount Kenya University question papers

Exam Year:2014

Answer question One which is compulsory and any other Two questions.
QUESTION ONE
a) Investment is very important for any country that wants to move forward what are the
determinants of investments. (4 marks)
b) National income accounting is very important to a country like Kenya but it’s not a good
measure of material will being. Explain. (4 marks)
c) Explain in detail the Keynesian’s transactions native for demand for money. (3 marks)
d) State the assumptions of the multiplier formula. (3 marks)
e) What are the sources of public revenue for a country? (4 marks)
f) A developing country like Kenya must protect the local industries against competition
against from multi-naturals. What are the forms of protection that can be used (8 marks)
g) State the goals of macroeconomic policy (4 marks)
(30 marks)
QUESTION TWO
a) Discuss any two approaches of measuring the national income (10 marks)
b) What are the uses of national income statistics (10 marks)
QUESTION THREE
(a) Discuss the Keynesian theory of demand for money (15 marks)
(b) State the principles of taxation (5 marks)
QUESTION FOUR
In the recent years Kenya has been experiencing inflation tendencies that have eroded the value
of money thereby making people worse off.
(i) Discuss by use of examples the various types of inflation. (10 marks)
(ii) Any country that fails to control inflation is doomed to fail. What are the remedies that can be
recommended for any economy to apply and bring inflation under control (10 marks)
QUESTION FIVE
(i) With the examples, explain the causes of unemployment (5marks)
(ii) Compare and contrast between free trade and protectionism (10 marks)
(iii) Economic will carry out the operations under either micro-economics or macro-economics.

Introduction To Macroeconomics Question Paper

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