a. Distinguish between absolute & comparative advantage

b. Explain three (3) barriers to international trade.

c. describe two (2)measures that can be used by a government to correct a deficit of the current account of its country's balance of payments.

Image an economy defined by the consumption function: C=140+0.9 (Yd)

also assume that I= Investment=400

G=Government spending=800

X= Exports=600

M=Imports =0.15Y

1. Derive the aggregate expenditure function from the data

2. calculate the equilibrium level of income (show working)

3. what is Autonomous consumption

4. Calculate the value of the multiplier

5. explain the following concepts:

a. average propensity to consume

b. autonomous consumption

c. the accelerator principle