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?

(a) Distinguish between 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 2:

(a) Critically analyse the main types of unemployment

(b) ‘There is no relationship between inflation and unemployment either in the short run or in the long run' Discuss

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Macroeconomics: question 1critically analyse the costs of

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