NATIONAL OPEN UNIVERSITY OF NIGERIA
14/16 AHMADU BELLO WAY, VICTORIA ISLAND, LAGOS
SCHOOL OF SCIENCE AND TECHNOLOGY
MARCH/APRIL 2014 EXAMINATION
COURSE CODE: AEM 724
COURSE TITLE: MACROECONOMICS
TIME ALLOWED: 2 ½ HOURS
INSTRUCTION: ANSWER ONLY 4 QUESTIONS
1. a. What do you understand by Gross National Product (GNP)?
⦁ State four functions of money.
⦁ Why would your country embark on an expansionary monetary policy?
⦁ Mention the roles of Central Bank in implementing expansionary monetary policy.
2. a. What do you understand by macroeconomics?
b. Define the following terms:
⦁ Deflation;
⦁ Disinflation;
⦁ Hyperinflaton;
⦁ Stagflation; and
⦁ Reflation.
c. Explain briefly the causes of Cost-Push Inflation?
3. a. Mention the challenges/disadvantages posed by large capital flow in an economy.
b. Define GDP for a given year.
c. Name the basic methods of measuring GDP
d. Differentiate between economic growth and economic development
4. a. Define the following:
⦁ GNP at factor cost;
⦁ GNP at market prices;
⦁ Net National Product;
⦁ Disposable Income; and
⦁ Transfer Payment.
⦁ Average Propensity to consume;
⦁ Marginal Propensity to consume.
b. What do you understand by consumption function?
5. a.Define the following terms?
⦁ Autonomous investment;
⦁ Induced investment;
⦁ Marginal efficiency of investment.
b. Mention the factors affecting inducement to invest.
c. Name the different types of Unemployment.
6. a. Define restrictive monetary policy.
b. Why does the Central Bank embark on a restrictive monetary policy?
c. How does the Central Bank carry out restrictive monetary policy?
d. Identify the problems of national income measurement in developing countries.
For the 2015 – till date past questions for this course CLICK HERE
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