Economics 8136/2 June 2023

The exam paper explores macroeconomic concepts, focusing on inflation, unemployment, economic growth, and government policies. Key topics include fiscal and monetary policy impacts, income inequality, globalisation, and market failures. Quantitative tasks involve calculating unemployment rates, tax liabilities, and inflation averages. Real-world scenarios address issues like obesity-related market failures, redistribution of income via taxation, and the effects of supply-side policies. The paper emphasizes evaluating economic priorities such as price stability and the trade-offs in policy implementation. Topics highlight the interconnectedness of global markets, challenges in addressing wealth disparity, and strategies for sustainable economic growth.