Answer the following problems.

problem 1) State national income. Also describe difficulties in measurement of national income.   

problem 2) Describe the following:

a) Determinants of investment   

b) Marginal efficiency of capital   

problem 3) Describe in detail, the inflationary and deflationary gap.

problem 4)(a) Briefly describe central bank and discuss its functions.

(b) Describe instruments and objectives of monetary policy.

problem 5) Describe the effects of government spending and taxation on output.   

problem 6)   Define inflation and discuss its types with causes.

problem 7) What is international trade? Also describe international trade theory.   

problem 8)(a)    Describe equilibrium in balance of payments.     

(b) Describe the causes and consequences of balance of payment disequilibrium.

problem9)(a) What is foreign exchange rate? Describe with ex.

(b) Describe the types of foreign exchange rate.     

problem 10) Briefly discuss GATT and WTO.