a)Using a well-labelled diagram, explain what happens to Aggregate demand of a country like Kenya when the prices of petroleum products increases.

b)An open economy with a chronic deficit in the government's budget. To address the problem, the government has resulted to heavy external borrowing. Describe effects of this borrowing on the Kenyan economy.

c)Country A and B are two main trading partners. A sells mainly raw materials to B, while B sells mainly consumption goods to A. There was a major technological breakthrough in the extraction technology which drastically reduced the cost of production in country A

i.Describe the initial set-up between the two economies

ii.Analyse the effects of thee change on the two economies

The COVID - 19 pandemic has rendered many people jobless. As an economic advisor to the government, explain five (5) ways in which the unemployment problem can be solved using a fiscal policy stimulus