QUESTION FIVE (a) Explain how the government, through the central bank can use both fiscal and...

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QUESTION FIVE (a) Explain how the government, through the central bank can use both fiscal and monetary policies to influence the stability and performance of an economy. (10 marks) (b) Explain the relationship between unemployment and inflation rate as was postulated by Philips and hence the Phillips curve. (5 marks) QUESTION SIX (a) Explain the importance of computing national income of a country. (10 marks) (b) Briefly highlight how the government of Kenya tries to promote exports as a means of reducing budget deficits. (5 marks QUESTION FIVE (a) Explain how the government, through the central bank can use both fiscal and monetary policies to influence the stability and performance of an economy. (10 marks) (b) Explain the relationship between unemployment and inflation rate as was postulated by Philips and hence the Phillips curve. (5 marks) QUESTION SIX (a) Explain the importance of computing national income of a country. (10 marks) (b) Briefly highlight how the government of Kenya tries to promote exports as a means of reducing budget deficits. (5 marks

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QUESTION FIVE a The government through the central bank can use both fiscal and monetary policies to influence the stability and performance of an economy Fiscal Policy Fiscal policy refers to the gov... View the full answer