Explain and discuss the concept of the ‘Business Cycle’ and how government policy can moderate the boom bust nature of this cycle.

economics

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Q1       Explain and discuss the concept of the ‘Business Cycle’ and how government policy can moderate the boom bust nature of this cycle. Are their limitations to government policy in attempting to stabilise the business cycle?

 

Q2       (i) With the aid of a diagram, describe the circular flow of an economy with the emphasis on a five-sector model.

            (ii) Provide a brief overview of the three ways of measuring output in an economy?

 

Q3       1994 to 2001 is recognised as the period of the authentic “Celtic Tiger”. Identify the key factors that gave rise to the strong growth that was experienced in that period. 

            Are some or all of these factors to be seen in the current Irish economic environment? Justify your answer.

 

Q4       (i) Outline and discuss what you know about Demand management policies (e.g. fiscal policy etc) and Supply side policies (e.g. reducing government regulations etc) and how they can impact the economy. Use appropriate diagrams where you see fit.

            (ii) With the aid of a diagram explain the impact on output and price level of an expansionary fiscal policy in the long term.

 

Q5       (i) Outline some of the factors that give rise to the demand and supply of a particular     currency?

            (ii) With the aid of a diagram outline the equilibrium price for a particular currency and what happens if the market moves from equilibrium?

            (iii) What are the factors which can cause a shift in the demand and supply curves of a particular currency. (Shift to the right or the left)


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