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Acs 302

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29 views

Acs 302

Uploaded by

ericknjane8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE CATHOLIC UNIVERSITY OF EASTERN AFRICA

P.O. Box 62157


A. M. E. C. E. A 00200 Nairobi - KENYA
Telephone: 891601-6
Fax: 254-20-891084
MAIN EXAMINATION E-mail:[email protected]

AUGUST – DECEMBER 2018 TRIMESTER

FACULTY OF SCIENCE

DEPARTMENT OF MATHEMATICS AND ACTUARIAL SCIENCE

REGULAR PROGRAMME

ACS 302: PRINCIPLES OF MACROECONOMICS

Date: DECEMBER 2018 Duration: 2 Hours


INSTRUCTIONS: Answer Question ONE and any other TWO Questions

Q1. a) Define the term fiscal policy (2 marks)

b) Explain the main functions of money (3 marks)

c) Distinguish between retail banking and wholesale banking (4 marks)

d) Outline the consequences of high interest rates (5 marks)

e) With the aid of a well labeled diagram, explain the circular flow of income
(6 marks)

f) Explain the major macroeconomic objectives (4 marks)

g) Outline the importance of macroeconomics (6 marks)

Q2. a) Discuss factors affecting demand of money (10 marks)

b) Explain how the monetary policy can be implemented (6 marks)

c) Explain the two types of fiscal policies (4 marks)

Cuea/ACD/EXM/AUGUST – DECEMBER 2018 / MATHEMATICS AND COMPUTER SCIENCE Page 1

ISO 9001:2008 Certified by the Kenya Bureau of Standards


Q3. a) Discuss the principle causes of increase in government expenditure
(12marks)

b) Discuss the role of the central bank in an economy (8 marks)

Q4. a) Discuss the main types of inflation (6 marks)

b) Explain the costs of economic growth (8 marks)

c) Define the term monetary policy (2 marks)

d) Explain the main types of monetary policies (4 marks)

Q5. a) Define the term unemployed (2 marks)

b) Outline the costs of unemployment (7 marks)

c) Discuss the causes of disequilibrium unemployment (6 marks)

d) Distinguish between microeconomics and macroeconomics (5 marks)

*END*

Cuea/ACD/EXM/AUGUST – DECEMBER 2018 / MATHEMATICS AND COMPUTER SCIENCE Page 2

ISO 9001:2008 Certified by the Kenya Bureau of Standards

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