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Exam revision Sem 1.a

Exam revision Sem 1.a - Briefly explain your examples 6...

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BU1003 Economics for Business Revision Exercises 1. Use a flow diagram to explain the leakages-injections approach to GDP. 2. Briefly explain what economists mean by the ‘production possibility frontier’. Draw such a figure and explain the determinants of its likely shape. In the figure you have drawn, illustrate the effect of an increase in the economy’s capital stock. 3. Explain the difference between a currency depreciation and appreciation. What determines the quantities of A$ demanded? What factors influence the demand and supply of US dollars? 4.. What is the Gross Domestic Product of a country? How is it used in Economics? Explain how it is calculated? 5. Examine two factors that cause the measured level of GDP to underestimate productive activity in the economy.
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Unformatted text preview: Briefly explain your examples. 6. What is meant by the term ‘economic growth’? Explain the benefits and costs of economic growth. 7. Briefly explain why unemployment is a problem to a country and to the unemployed individual. 8. Explain how you would calculate a nation’s unemployment rate and the labour force participation rate. 9. Explain two sources of bias in the CPI. 10. Show on diagrams, long-run macroeconomic equilibrium, and two short-run macroeconomic equilibriums. In a separate diagram show the corresponding points on a business cycle. 11. What is fiscal policy and what is its purpose? Give examples of expansionary and contractionary fiscal policies. 12. Who implements monetary policy? What action would constitute contractionary monetary policy? 1...
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