Macroeconomics Essay Outlines 2

NJC Prelims 06
Thanks to Chloe, Iwan and Jun How for helping me look through these.

Q3) In times of recession, a decrease in tax will induce spending and through the multiplier process add to income and create more jobs.
Discuss this argument and consider whether it necessarily implies that it would be better to reduce tax. [25]

Q5)

“China’s economy last year achieved a highly impressive growth rate of around 9%. Domestic consumption and domestic investment continued to form the dominant source of growth. The true inflation rate is probably above 5%. The economy is overheated” (The Straits Times, January 26, 2004)

Discuss the effectiveness of various government policies that could be used to deal with the ‘overheated economy’. [25]

Download (110kb)