7. (a) (i) What economic uses are made of a Consumer Price Index? (ii) Explain how a Consumer Price Index is constructed, (25 marks) (b) Explain the likely economic effects on the Irish economy of a significant increase in the annual rate of price inflation. (25 marks) (c) Outline the economic role played by TWO of the following international banking organisations: The International Monetary Fund (IMF); (ii) The World Bank; (iii) The European Central Bank (ECB). (25 marks) [75 marks] 8. (a) The government announced plans to decentralise/re-locate many government departments and state agencies throughout the country. Discuss TWO possible economic advantages and TWO possible economic disadvantages of this policy for the development of the Irish economy. (20 marks) (b) It is argued that the Irish economy is currently experiencing close to full employment. (i) Explain the underlined term. (ii) Discuss TWO economic benefits and TWO economic difficulties of a full employment economy in Ireland today. (25 marks) (c) There has been high expenditure in recent years on developing transport and communications infrastructure in Ireland. With the use of examples, outline TWO possible social costs and TWO possible social benefits of these developments. (30 marks) [75 marks]4. (@) Explain what is meant by the term 'National Income'. (ii) In Ireland at present, would you expect GNP to be greater than, equal to, or less than, GDP? Explain your answer. (20 marks) (b) (i) Explain what is meant by the term 'the multiplier". (ii) State the formula by which the multiplier is measured in an open economy. (iii) Explain the variable elements in the formula. (iv) It has been estimated that in the Irish economy: MPM = 0.4, MPT = 0.24, MPS = 0.26. Calculate the value of the multiplier in the Irish Economy. Show your workings. (30 marks) (c) Gross National Product at Current Market Prices for the year 2005 in Ireland was approximately 45% higher than the figure for the year 2000. State and explain the relevance of FOUR other pieces of economic information which you would use to assess whether or not the average standard of living had also risen by approximately 45% between 2000 and 2005. (25 marks) [75 marks]