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Hbc2115:Introduction To Macro Economics Question Paper

Hbc2115:Introduction To Macro Economics

Course:Bachelor Of Commerce

Institution: Meru University Of Science And Technology question papers

Exam Year:2012

QUESTION ONE (30 MARKS)
a) Clearly explain the major methods of computing National income? ( 9 Marks) b) Using a well labelled diagram explain the circular flow of National income in an open economy? (11 Marks) c) Briefly discuss the three motives of holding money according to the Keynesian Theory of money? (10 Marks)
QUESTION TWO (20 MARKS)
a) The Keynesian theory of employment is based on several assumptions, Briefly explain six of this assumptions? (12 Marks) b) Discuss Keynes criticisms of the classical Theory of full employment? (8 Marks)
QUESTION THREE (20 MARKS)
a) What is meant by the following macroeconomics terms? (i) Inflation ( 1 Mark) (ii) Unemployment ( 1 Mark) b) What are the basic types of inflation? (4 Marks) c) Distinguish between monetary and fiscal policies as used by a state to control macro economics problems. (14 Marks)
QUESTION FOUR (20 MARKS)
a) What are the main characteristics of money? (8 Marks) b) Discuss four functions of money (8 Marks) c) Briefly discuss the role of the central bank in the economy? (4 Marks)
QUESTION FIVE (20 MARKS)
a) Given the following National income model of a country: C = 160 + 0.4 Yd T = 120 + 0.2Y X = 140 M = 100 I = 100 G = 120
Calculate the amount of: (i) National Income (ii) Tax (iii) Consumption (iv) Investment Multiplier.

Hbc2115:Introduction To Macro Economics Question Paper

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