15.
16.
ule
18.
19.
20.
21.
22.
23.

26.
27.

Fishers equation of exchange.

Classical Dichotomy.

Functional Finance.

Exante and Expost variable.

Ratchet Effect.

Define gross domestic product ?

Inflationary and Deflationary Gap.

Bring about the technical attributes of Keynesian consumption function ?
Distinguish between Micro and Macro Economies.

Define MEC.
(10 x 2
Part C (Short Essay Questions)

Answer any six questions.
Each question carries 5 marks.

Explain the theory of Comparative static equilibrium ?

Explain the Keynesian income determination in four sector economy.
Explain the Life Cycle Hypothesis.

Calculate NI by using the following data.

Compensation of employees
Government Purchases

Net indirect taxes

Interest and Profits

Net exports

Gross business fixed Investment
Personal consumption expenditure

Inventory investment

2
2.
3.
4.
5.
6.
4.
8.
9.

Net factor income from abroad
Consumption of fixed capital
Mixed income of the self-employed

C 30476

= 20 marks)

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