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(1) Economists focus on achieving macroeconomic goals. There are four major macroeconomic goals namely full employment, price stability, economic growth and equitable distribution of income.

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(1) Economists focus on achieving macroeconomic goals. There are four major macroeconomic goals namely full employment, price stability, economic growth and equitable distribution of income. However, government will not be able to implement two particular goals at the same time. Explain the conflicting macroeconomic between full employment and price stability with relevant example. (6 marks) (2) Define net exports. How are the net exports determined? Explain why net exports might be a negative amount. (4 mark s) (3) Explain how the equilibrium national income determined in an economy. (6 marks) (4) Define Gross Domestic Product (GDP) and elaborate its components. (4 mark s) (5) There are various factors besides income which can change the consumption and saving functions. Elaborate FIVE (5) factors of non-income determination with relevant example. (10 marks)

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