Question 1 A Write on any THREE (3) functions of a Central Bank. B. Discuss TWO (2) ways in which a Central Bank controls money supply within a country. C. Explain the term 'inflation'. D. Describe TWO (2) types of inflation. Assess TWO (2) ways in which inflation may have an impact on an economy. Question 3 A. Distinguish between the theories of absolute and comparative advantage. B. Identify THREE (3) barriers to trade and discuss why a government should or should not impose such barriers. C. Evaluate the structure of the Balance of Payments. Question 4 A. With the use of TWO (2) examples, distinguish between injections and withdrawals. B Consider the following numerical version of the Keynesian model of an open cconomy with government: C = 100 + 0.8 Yd 1 = 150 G = 250 T = 200 i. Using the equilibrium condition Y = C + I +G, solve for the value of the equilibrium output. Yd is defined as Y - T. ii. What is the level of consumption at the equilibrium level of national income? C INCOME CONSUMPTION INVESTMENT 2 000 1 800 1 000 3 000 2 600 1 000 4 000 3 400 1 000 5 000 4 200 1 000 6 000 5 000 1 000 7 000 5 800 1000 From the table above, determine: i. the equilibrium level of output ii. MPS and MPC iii. the value of the multiplier iv. by how much income would change, if investment rises by $1 000. Question 2 The table below lists Jamaica's transactions in 2017: Consumers' expenditures 100 000 Government expenditure 40 000 Gross investment 37 000 Value of increase in stock 2 000 Exports of goods 18 000 Imports of goods 17 130 Income paid abroad 7 400 Income received from abroad 7 900 Subsidies 1 390 Taxes on expenditure 1 740 Capital consumption 5 500 A. Use the information above to calculate: i. Gross Domestic Product (market prices) ii. Net Property Income iii. Gross National Product (market prices iv. Gross National Product (factor cost) v. National Income B. Explain what is meant by 'Transfer Payment'. Include an example in your explanation. C. Discuss THREE (3) uses of National Income statistics