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The GDP deflator in India is 200 january
1 2019. The deflator rises to 242 by january
1 2020 and to 266 january 1 2021. 6
a)What is the annual rate of inflation over
the two year period between january 1
2019 and 2020
b) what is the annual rate of inflation over
the year period from january 2020 to 2021
This diagram from the economist argues that investment (spending by firms) is influenced more by how the firm is doing rather than the central interest rate. It also shows that shareholders (consumers) are earning good returns from their money as a result of this business success.
Explain why monetary policy may be less effective as a result of this information.
a. (i) Distinguish between balance of trade and balance of payment.
(ii) Why do most developing countries experience balance of payment deficit?
(iii) Explain the main factors that influence investment in Kenya
Illustrate the usefulness of Phillips Curve in Macroeconomic management
a. You are given the following information about a hypothetical economy;
C = 800 + 0.75Y
I = 500
G = 900
Where
C = Consumption
I = Investment
G = Government spending
(i) Compute the equilibrium level of national output and consumption.
(ii) What is the size of government expenditure multiplier (1mk)
(iii) Interpret the government expenditure multiplier in (ii) above
(iv) Differentiate between accelerator and multiplier effects.
(v) Explain the limitations to the application of multiplier in economic management.
Discuss in an essay the advantages of a mixed economy
What is a mixed economy?
1.
a) If the level of government spending were to decrease by 100 units in the IS – LM schedule
model, how would this affect the position of the IS schedule?
b) In which direction would the
schedule shift, and by how many units? ( 1+3=4 marks)
Discuss in an essay (250 words) form the key macroeconomic effects of COVID19 (ignore health effects) on New Zealand. Identify how this economy can promote economic growth given the pandemic. Identify three macroeconomic policy interventions to support the livelihood of people in such an economy.
Discuss in an essay (350 words) form the key macroeconomic effects of COVID19 (ignore health effects) on New Zealand. Identify how this economy can promote economic growth given the pandemic. Identify three macroeconomic policy interventions to support the livelihood of people in such an economy.
Discuss in an essay (950 words) form the key macroeconomic effects of COVID19 (ignore health effects) on New Zealand. Identify how this economy can promote economic growth given the pandemic. Identify three macroeconomic policy interventions to support the livelihood of people in such an economy.
