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Introduction To Macroeconomics Question Paper

Introduction To Macroeconomics

Course:Introduction To Macro Economics

Institution: Mount Kenya University question papers

Exam Year:2014

Answer question One which is compulsory and any other Two questions.
QUESTION ONE
a) State the canons of public expenditure (4marks)
b) What are the determinants of consumption (4marks)
c) State any two reasons why macroeconomics is important (4marks)
d) ‘Inflation is such a bad disease that any country would wish to rid off’. Explain
(4marks)
e) State and explain any two factors that cause the shifts in the balance of payments curve.
(4marks)
f) What are the policies that can be used to curb unemployment in Kenya (5marks)
g) State the functions of money (5marks)
(30 marks)
QUESTION TWO
a) National income accounting is very paramount to any country that is conscious a bout its
growth and development. Discuss the national income difficulties in estimation of
national income (10marks)
b) Discuss some of the options that can be used by Kenyan government in dealing with
excess money in circulation (10 marks)
QUESTION THREE
a) State and explain the methods that can be used by a country to correct the trade deficit
(10 marks)
b) Some times countries that are developing can resort to taking up measures to protect
their young industries against foreign multinational. Discuss the forms of protection that
can be used by such a country (10marks)
QUESTION FOUR
a) State and explain the types of investments that can be witnessed in any economy like
Kenya (10 marks)
b) What are the determinants of investments (10 marks)
QUESTION FIVE
a) Briefly explain the main components of balance of payments (10 marks)
b) What are the roles of central bank to any country like Uganda (10marks)

Introduction To Macroeconomics Question Paper

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