Question 1:
a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy?
b) Explain using both diagrams and mathematical tools, why a 20% increase in investment leads to a higher percentage increase in National Income?
Question 2:
Notwithstanding the economic vulnerabilities faced by as a small island economy, Mauritius is an example of economic success. However, a number of factors are presently impinging on the prospects for future economic growth. Discuss.