Attached below;

(0) Using an IS/LM diagram briefly explain the likely effects of a fiscal contraction on both the domestic interest rate and the level of economicactivity. [2] (ii) Using a second IS/LM diagram briefly explain the likely effects of a monetary contraction on both the domestic interest rate and the level of economic activity. Explain briefly the concepts of voluntary and involuntary unemployment. [2] (ii) Outline two reasons which might explain why some people choose to be voluntarily unemployed on a long term basis (i) Outline how the national debt may be linked to this yearis fiscal deficit and how a rising national debt can impact on next yearis fiscal deficit. [2] (ii) Outline why it is that countries with a high national debt tend to have to pay a higher rate of interest, other things being equal, than countries with a low national debt State the effects of an appreciation of the exchange rate of a country on its: (i) import volumes [1] (ii) inflation rate as measured by a consumer price index made up of domestic produced and imported goods [1] (iii) export volumes [1] (iv) export earnings measured in the domestic currency. (i) Discuss the differences between a market structure characterised by monopolistic competition and one characterised by monopoly. In your answer refer to both the short and the long run. (No diagrams are required in your answer.) [10] (ii) Explain the effects of a per unit sales tax on Good X on the producers of Good X, the consumers of Good X and the government tax revenues. Discuss any net welfare effects for society as a whole. Illustrate your answer using a diagram and discuss the welfare implications using the concepts of consumer and producer surplus.|