Economics 7136/2 June 2019

The paper examines macroeconomic themes and international economic dynamics. Section A focuses on GDP, living standards, fiscal policy, and taxation, exploring economic growth, public debt management, inequality, and environmental sustainability. Key topics include the Happy Planet Index, austerity, income tax systems, and economic growth’s impact on deficits. Section B delves into currency depreciation, monetary policy, financial regulations, inflation, and deflation. Central themes include exchange rate mechanisms, inflationary pressures, policy interventions, and their broader macroeconomic implications. The questions emphasize analytical skills, policy evaluation, and real-world applications, engaging with topics like fiscal sustainability, monetary policy efficacy, and economic stability.