Download Macroeconomics Exam Paper (B.Sc. Business Info Systems) - Semester 2, 2010/2011 and more Exams Macroeconomics in PDF only on Docsity!
Semester 2 Examinations 2010/ 2011
Exam Code(s) 1BF Exam(s) B.Sc. (Business Information Systems) Module Code(s) EC Module(s) Principles of Macroeconomics Paper No. 1 Repeat Paper External Examiner(s) Professor Pat McGregor & Professor Cillian Ryan Internal Examiner(s) Professor John McHale Professor Terrence McDonough
Instructions: Students are required to answer TWO questions.^ Each question
carries equal marks.
Duration: 2 hrs.
No. of Pages 3 in total Discipline(s) Economics Course Co-ordinator(s) Terrence McDonough Requirements : MCQ YES Release to Library: Yes No Handout Statistical/ Log Tables Cambridge Tables Graph Paper Log Graph Paper
X
Answer any TWO questions. Please answer all parts. Label all diagrams carefully.
- a. Briefly state why the neoclassical world view is consistent with conservative political policy.(15 marks) b. 1. Draw a graph illustrating the neoclassical theory of unemployment. ( marks)
- What causes unemployment in this theory? (5 marks)
- Which are the effects of a minimum wage law according to this neoclassical model? (10 marks)
- How does the neoclassical policy in relation to unemployment illustrate your statement in section a above? (10 marks)
- a. Explain the neoclassical theory of the business cycle. Use aggregate demand and aggregate supply graphs to explain positive shocks and negative shocks. (22 marks) b. Draw the movement of the business cycle over time as explained by the Marxian theory. List the factors that change in the upturn along with the direction of the change. Do the same for the downturn. (20 marks) c. Identify four differences between the neoclassical model and the ecological economics model as presented in class and the readings. (8 marks)
- a. 1. Illustrate the Keynesian explanation of unemployment with a diagram showing the Aggregate Expenditure line, the 45 degree line and a line identifying full employment GDP. (16 marks)
- If GDP was temporarily at full employment GDP what would happen in this scenario? (6 marks)
- What options does the government have according to this analysis in addressing the problem? (12 marks)
