UNIVERSITY EXAMINATIONS: 2021/2022
COLLEGE OF TECHNOLOGY
ORDINARY EXAMINATION FOR BUSINESS AND INFORMATION TECHNOLOGY
BUSS 106: INTRODUCTION TO MACRO-ECONOMICS
(PART- TIME/FULL TIME)
DATE: DECEMBER 2021 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS.
QUESTION ONE:
I. Explain how the Monetary and fiscal policy measures can be applied to control
inflationary pressure in a country (12Marks)
II. Briefly explain the difference between Micro- Economics and Macro- Economics citing
suitable examples in each case (4
Marks)
III. With the aid of a diagram explain the relationship between Inflation and Unemployment
as provided by the Philips Curve (4
Marks)
(Total: 20 Marks)
QUESTION TWO.
a) ‘’Money is what money does’’. Explain this statement using suitable examples
(8 Marks)
b) Explain the meaning of the term bank crises clearly stating the possible causes and
remedies of the banking crises. (7 Marks)
(Total: 15 Marks)
QUESTION THREE.
a) ‘’The subject of emerging issues in financial institutions and markets in Kenya is a hot subject
nowadays’ ’Identify and explain any four emerging issues that in financial institutions and
markets in Kenya (8 Marks)
b) Define the term unemployment and Identify and explain four causes of unemployment in
Kenyan Context (7 Marks)
(Total: 15
Marks)
QUESTION FOUR.
a) Outline four uses of the national income statistics in a country (8 Marks)
b) Highlight any six indicators of economic growth and development in a country (12 Marks)
(Total: 20 Marks)
