Hps2245:Intermediate Microeconomics Question Paper
Hps2245:Intermediate Microeconomics
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2014
QUESTION ONE (30 MARKS)
a. Explain the main reasons that aggregate demand curve slopes downwards. (6 Marks) b. Critically evaluate both the Keynesian and classical ranges of the aggregate supply curve. (6 Marks) c. State the factors that are likely to shift the aggregate supply curve to the right and explain how this happens. (6 Marks) d. The G.D.P of a country doubled while the population increased by 15%. Explain and illustrate: i. The changes in per capital income (4 Marks) ii. The changes in economic welfare (4 Marks) e. Explain the causes of inflation in Kenya today (6 Marks)
QUESTION TWO (20 MARKS)
a. Outline the methods of calculating the national income and clearly show how each methods arrives at the Net national product of a country (12 Marks) b. Explain the Keynesian Theory of holding money and demonstrate/illustrate each argument (8 Marks)
QUESTION THREE (20 MARKS)
a. Develop the circular flow of income of an open economy (12 Marks) b. resham’s a is that mone of lesser value ill chase mone of greater values out of the market. iscuss the enan eperience of the resham’s Law (8 Marks)
QUESTION FOUR (20 MARKS)
a. Explain the Key reasons for Exchange rate fluctuations (10 Marks) b. State and explain the assumptions of the comparative advantage theory
(10 Marks)
QUESTION FIVE (20 MARKS)
a. i. Discuss the national income equilibrium using the Keynesian Theory
(8Marks)
ii. Describe the LM and IS a curve and clearly showing the equilibrium (4 Marks)
b.) Explain the following terms as used in Macro economics
i. G.D.P ii. G.N.P iii. N.N.P iv. Personal income (8 Marks)
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