It is said that macroeconomics is concerned with the behaviour of the economy as a whole – with booms and recessions, economy’s total output of goods and services and
the growth of output, the rates of inflation and unemployment, the balance of payments, and exchange rates.

(a) Identify Malawi’s main macroeconomic objectives as an agro-based developing country. [6 marks]

(b) With a focus on Malawi’s economy, mention any two positive and any two
negative features of economic growth. [4 marks]

(c) Explain why both the Peak and the Recession are said to be the inflationary
phases of the business cycle. [4 marks]

(d) Using examples of Malawi’s economy and with regards to the impact of the
business cycle, discuss why it is wiser to invest in the agriculture sector than in
the industry sector.