Along the demand curve, price elasticity of demand is constant. Do you agree?
Illustrate the income and cross elasticity of demand.
Use circular flow model to illustrate the concepts of injections and withdrawals.
Illustrate the concept of the budget multiplier.
Using the concept of the multiplier, discuss and describe how a country’s involvement in international trade impacts on its economy.
Illustrate clearly what are inflation and its main causes.
Make a distinction between the major types of unemployment.
Illustrate out the relationship between inflation and unemployment in short run and long run.