(a) (i) Define the following terms:

Gross Domestic Product at Current Market Prices;

Gross National Product at Factor Cost.

(ii) Explain two reasons why GDP in Ireland at present is larger than GNP.

(30)

(b) (i) Explain what is meant by the term 'Multiplier'.

(ii) It has been estimated that in the Irish economy:

MPT = 0.22, MPM = 0.30, MPS 0.28.

Calculate the value of the Multiplier in the Irish economy.

(iii) Outline briefly how taxes affect the value of the Multiplier.

(25)

(c) 'The Irish Government predicts that the rate of economic growth in 2011 will be 1.75%'.

(The National Recovery Plan 2011-2014)

Discuss the economic effects of an increase in the rate of economic growth on the Irish

economy.

(20)

[75 marks]

8. (a) Discuss the economic uses of the 2011 Census of Population data for Government and

Business. (20)

(b) 'Ireland is experiencing the highest level of net outward migration since 1989'.

(The Central Statistics Office, 2010)

Discuss the reasons why Ireland is now experiencing a high level of net outward migration.

(25)

(c) 'The unemployment rate in Ireland in December 2010 was 13.6%'.

(The Central Statistics Office)

(i) Discuss two economic measures which the Government could take in order to

reduce the level of unemployment in Ireland.

At the end of the year 2010, the EU and the IMF agreed 85bn of financial support for Ireland.

(ii) Discuss the economic effects of this financial support on the Irish economy