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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

QUESTIONONE (30 MARKS)
a. Explain the following concepts as applied in economics. (10 Marks) i. Empirical economics ii. Economic theory iii. Assumptions in economics iv. Economic growth v. Full employment b. Explain the difficulties in measuring the National Output in Kenya. (6 Marks) c. A county experiences a 20% growth in G.D.P while population growth was 10% develop and explain. i. The changes in per-capita (2 Marks) ii. The changes in development (2 Marks) d. Explain the determinants of investment (4 Marks) e. State the assumptions of comparative advantaged theory (6 Marks)
QUESTION TWO (20 MARKS)
a. Develope and explain the main lessons why a county freely trades with other countries. (6 Marks) b. Develop the methods of coming up with an exchange rate. (6 Marks) c. Show and explain the circular flow of income of an open market economy. (8 Marks)
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QUESTION THREE (20 MARKS)
a. Using relevant illustrations explain the following: i. Money supply and money demand (8 Marks) ii. Liquidity trap (4 Marks) b. What is the protection policy and explain the various tools used to practice protection policy. (8 Marks)
QUESTION FOUR (20 MARKS)
a. Explain the determinants of aggregate demand and aggregate supply. (12 Marks) b. Using the Keynesian Theory explain the macro economic equilibrium. (4 Marks) c. Explain the IS and LM curves. (4 Marks)
QUESTION FIVE (20 MARKS)
a. Using a numerical illustration develop and explain the National income Multiplier. (10 Marks) b. Explain the functions of the central Bank on Kenya to the Government. (10 Marks)

Hbc2115:Introduction To Macro Economics Question Paper

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