ECS2602 EXAM PACK

ECS2602 TEST BANK Question 1 Which of the following statements is/are correct? a) In this module we only study the demand side of the economy which includes the goods market and the financial market. The labour market form part of the supply side analysis and are therefore excluded from this module. b) The two most important accounts of the balance of payments are the current account and the financial account. c) If total output decreases with 2% during a specific year and the general pri...

Macroeconomics studies the determination of the level of output and income for a specific firm. False. Macroeconomics deals with the economy as a whole and not a specific firm. The main instrument of fiscal policy is the budget, while the main policy variable is the interest rate. False. The policy variables are government spending and taxation