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Eco 111: Macroeconomics Question Paper

Eco 111: Macroeconomics

Course:Introductions To Macro Economics

Institution: University Of Eldoret question papers

Exam Year:2013

UNIVERSITY OF ELDORET
SCHOOL OF ENVIRONMENTAL STUDIES
DEPARTMENT OF APPLIED ENVIRONMENTAL SOCIAL SCIENCES
2ND SEMESTER UNIVERSITY MAIN EXAMINATIONS
2012/2013 ACADEMIC YEAR
ECO 111: INTRODUCTION TO MACROECONOMICS

Instructions:answer question ONE and any other THREE questions

QUESTION ONE
a).Examine the various factors that affect the savings function (10mks)
b).Discuss objective measures used to raise the marginal propensity to consume (10mks)
c).Explain the factors that determine the investment function. (10mks)

QUESTION TWO
a).Write short notes on the following terms: (10mks)
i) Laissez fair economy
ii)Four sector model economy
iii)Say''s law
iv)Multiplier
b).Differentiate between microeconomics and macroeconomics and state the relationship between the two. (10mks)

QUESTION THREE
a).Discuss the importance of National Income estimates in economic development. (10mks)
b).Using relevant examples, explain the problems encountered in the measurement of National Income. (10mks)

QUESTION FOUR
a).State and explain the key assumptions of classical theory of employment (10mks)
b).Explain the basis of criticisms leveled against the classical theory of employment according to Keynes.

QUESTION FIVE
a).Explain how the IS and LM curves are derived graphically. (10mks)
b).Explain the importance and limitations of IS and LM model framework as a policy tool in a developing economy. (10mks)

SUCCESS!!!

Eco 111: Macroeconomics Question Paper

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