The format of the assessment process on modules may change from semester to semester. This may not be the current format for your module. Always check with the relevant module leader what the precise, current format is before you begin to prepare for the assessment on any given module.
All questions carry equal marks.
Time Allowed 45 minutes. State the components of Aggregate Demand and discuss how government can influence each component. Explain why it is difficult for government to achieve all objectives at the same time. Explain what is meant by a stable equilibrium in the demand and supply model.