problem 1:

Along the demand curve, price elasticity of demand is constant. Do you agree?

problem 2:

Illustrate the income and cross elasticity of demand.

problem 3:

Use circular flow model to illustrate the concepts of injections and withdrawals.

problem 4:

Illustrate the concept of the budget multiplier.

problem 5:

Using the concept of the multiplier, discuss and describe how a country’s involvement in international trade impacts on its economy.

problem 6:

Illustrate clearly what are inflation and its main causes.

problem 7:

Make a distinction between the major types of unemployment.

problem 8:

Illustrate out the relationship between inflation and unemployment in short run and long run.