This paper contains SEVEN questions.
Candidates are required to answer TWO questions. Question ONE is compulsory, then choose ONE from the remaining questions
Question ONE requires you to use macroeconomic statistics, the same statistics considered in the unit and available on its myCourse site. A fresh copy of these statistics will be given to each student in the exam.
The exam will be placed on myCourse prior to the exam.
All questions carry equal marks.
THE FOLLOWING QUESTION IS COMPULSORY
You have been asked by a multi-national company to review how the UK economy has performed since the 1980s and to predict how it might perform in the future, depending on the governments choice of economic policy and possible events at home and abroad.
make use of the macroeconomic statistics distributed to you in this exam.
PLEASE ANSWER ONE OF THE FOLLOWING QUESTIONS
Explain how first Adam Smith, and then Karl Marx, sought to explain how the market economy worked.
Analyse why and consider how banking (from the eighteenth century) and the stock market (from the nineteenth century) developed in the UK.
Explain how Keynes used his concept of the circular flow of income to argue that the level of investment (injections) determines the level of savings (withdrawals) in the economy, and consequently that the government should manage the level of aggregate demand to maintain full employment.
Outline the main features of the free-market approach to running the economy that became the dominant approach to running the economy from the 1980s to the outbreak of world-wide economic crisis in 2008.
Explain how the financial crisis of 2007-2008 occurred and consider how the UK government and the Bank of England acted to support the financial system through the crisis. Finally, recommend how such a crisis may be prevented in the future.
Analyse and illustrate, employing diagrams where appropriate, how the free-market approach and the market-interventionist approach differ in their attitude to reducing voluntary, involuntary and structural unemployment (together the countrys natural rate of unemployment).
this is an exam paper i want him to do the first questions which is and any of the question from the rest within 300 words.plz make sure to select any question where you can draw a graph or somthing because it will save me time and i can get good marks. thanks