FHBM1024 Exam Solutions: MCQs and Structured Questions Guide
School
Tunku Abdul Rahman University College, Kuala Lumpur**We aren't endorsed by this school
Course
FHBM 1024
Subject
Economics
Date
Dec 10, 2024
Pages
4
Uploaded by BarristerMantisPerson1133
Suggested answer for FHBM1024 Past Year Examination (Apr 2019)Section A: MCQQ1. DQ2. DQ3. CQ4. BQ5. CQ6. CQ7. BQ8. BQ9. CQ10. AQ11. AQ12. CQ13. AQ14. AQ15. BQ16. CQ17. DQ18. AQ19. CQ20. CSection B: Structured QuestionsQ1. (a) (i) NGDP (2016) = RM 65700 NGDP (2017) = RM 77360 NGDP (2018) = RM 71000 RGDP (2016) = RM 66600 RGDP (2017) = RM 73560 RGDP (2018) = RM 67200 (ii) GDP deflator (2017) = 105.17 GDP deflator (2018) = 105.65 (iii)Inflation rate (2018) = 0.46% Inflation happened. The average prices for goods and services increased by 0.5percent in 2018 compare to the previous year (2017). (b) (i) Spain did not achieve at the full employment because the actualunemployment rate (15.2%) is greater than the natural rate ofunemployment. (ii) Effects of unemployment:Poverty, Low rate of economy, Expanding divisions in society,Increasing illiteracy rate,Crime rate level increased (Any four effects are acceptable)
Q2.(a)i = Decrease ii = Left iii = Downward sloping iv = Increase v = Increase vi = Right vii = No changes viii = Decrease ix = Perfectly inelastic or vertical (b)The Wealth Effect Price Level (PL) => Reduction of purchasing power ¯=> Consumption ¯The Interest-Rate Effect Price Level (PL) => Interest rate => Investment ¯The Open Economy Effect OR The Exchange-Rate Effect Price Level (PL) => Exports ¯=> Net Exports ¯(c)(i) Decrease (ii) Decrease (iii) Increase(iv) Decrease (v) Decrease Q3.(a)(i)Expansionary fiscal policy (ii)(A)Aggregate Demand: increase (B) Aggregate Demand curve: right (C)Real gross domestic product: increase (D)Price level: increase (E)Employment: increase (iii)AD1E0PL1AD0Price Level (PL)LRASSRASRGDPnrRGDP0RGDPE1PL0
(b)(i)Change in AD = RM5,500 million AD increase by RM5,500 million (ii)Change in AD = - RM3,683.33 million AD decrease by RM3,683.33 million Q4.(a)- Contractionary Monetary Policy - sell bonds - raise reserve requirements - raise the discount rate - Aggregate Demand decrease - Aggregate Demand curve shifts left - Real GDP (RGDP) – decrease - Price Level (PL) decrease (b)NoEconomic ConditionsExpansionary or ContractionaryMonetary Policy(i)ContractionExpansionary Monetary Policy (ii)ExpansionContractionary Monetary Policy (iii)RecessionExpansionary Monetary Policy (iv)RecoveryContractionary Monetary Policy (v)Financial crisisExpansionary Monetary Policy RGDPAD0E1PL0AD1Price Level (PL)LRASSRASRGDP0RGDPnr 0E0PL1