Page 165 - Macroeconomics. book docx_Neat

A. Money demand rises with income

B. Exports increase

C. Saving rises

D. Taxes increase

Section B: Short Essay Questions (10 Marks)
Answer TWO questions only:

1. Explain inflation and its effects on the economy.

2. Discuss unemployment as a macroeconomic problem.

3. Explain the IS–LM model briefly.

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