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Aec 102 Elements Of Macroeconomics Question Paper

Aec 102 Elements Of Macroeconomics

Course:Bachelor Of Commerce

Institution: Pwani University question papers

Exam Year:2013

PWANI UNIVERSITY
UNIVERSITY EXAMINATIONS 2012/2013 ACADEMIC YEAR
1ST YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
AEC 102 ELEMENTS OF MACROECONOMICS
TIME 3HRS 8.00AM-11.00AM

INSTRUCTIONS.
ANSWER QUESTION ONE AND ANY OTHER THREE QUESTIONS

QUESTION ONE

a)Investment is very important for any country that wants to grow economically.What are the determinants of investments? (4MKS)
b)National income accounting is very important to a country like Kenya but its not good measure of material well being.Explain. (4mks)
c)Explain in detail the Keynesian''s transactions motive for demand for money (3mks)
d)State the goals of Macroeconomics policy (1mk)
e)What are the determinants of consumption? (4mks)
f)State any two reasons why macroeconomics is important (4mks)
g)What are the policies that can be used to cur unemployment in Kenya (5mks)

QUESTION TWO

a)Distinguish between real and nominal gross national product(GNP) (2mks)
b)Explain any four factors that may affect the size of of national income (8mks)
c)Although the government has been recording an impressive gross domestic product(GDP) growth figures, most people dismiss it
as not true since their welfare has not improved.As an economist how would you explain this paradox? (5mks)

QUESTION THREE

a)Give a brief account on the historical development of money (6mks)
b)With the help of a well labelled diagram explain how equilibrium is archived with IS-LM curves (6mks)
c)State the functions of money (3mks)

QUESTION FOUR

a)What is meant by inflation (2mks)
b)What are the major causes of inflation? (4mks)
c)Explain the economic problems that arise from a high rate of inflation (6mks)
d)Explain the relationship between inflation and unemployment (3mks)

QUESTION FIVE

a)Write brief notes on the following economic concepts
i)the multiplier
ii)autonomous and induced consumption
iii)aggregate demand and aggregate supply (9mks)
b)Unemployment can be classed into different types.State and explain any three different types of unemployment (6mks)

Aec 102 Elements Of Macroeconomics Question Paper

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