question 1critically analyse the costs of, Macroeconomics

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question 1critically analyse the costs of

Question 1:

Critically analyse the costs of inflation. Which of these items is likely to have encouraged many governments in their adoption of inflation as public enemy number one?

Question 2:

(a) Distinguish static and dynamic gains from trade.

(b) Explain clearly, with the help of diagrams, the welfare effects of an import tariff assuming

(i) the economy is small
(ii) the economy is large

Question 3:

Write notes on ALL of the following:
(a) Functions of the Bank of Mauritius
(b) International Competitiveness
(c) Budget Deficit and Fiscal Stance
(d) Government in the Circular Flow of Income

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