8/16/2019 Econ 302 Tutorial Sheet 1 2016

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Econ 302, Tutorial Sheet 12016

1. Compare and contrast the Keynesians, monetarists and Classical schools of thoughts.

Which one is most applicable in developing countries like Zimbabwe?

. !efine "ystems of #ational $ccounts. "tate and e%plain the three methods ofmeasuring &!'.

(. )ow useful are "ystems of #ational $ccounts *"#$s+ in understanding

macroeconomic behavior of any country?

. With the use of an -"/0' model 2i.e. no price ad3ustment4 identifythe conditions

where fiscal policy is most effective in influencing the level of output inthe economy.

5. !efine an underground economy and e%plain how the prevalence of an underground

economy can be a challenge in the compilation of basic macroeconomic statistics in

$frica, particularly in Zimbabwe? What implications does this have on

macroeconomic policy formulation?