10.2.3 MACROECONOMICS [100]
QUESTION ONE [20]
Discuss the two broad views of the role of the government in the economy in terms of
public sector economics.
QUESTION TWO [30]
2.1 Differentiate, with the aid of diagrams, between the short-run aggregate supply
curve, (SRAS), and long-run aggregate supply curve, (SRAS). (16)
2.2 With the aid of examples, distinguish between the expenditure method and
income method of measuring gross domestic product (14)
QUESTION THREE [20]
The government of any economy pursues some key macroeconomic objectives to
ensure the well-being of its economy. Discuss four of these major macroeconomic
objectives.
QUESTION FOUR [30]
4.1 List and examine two (2) effects of inflation. (20)
4.2 Explain the type of unemployment that is related to the business cycle. (10)