Question 1[7 Marks]

"All societies face the economic problem, which is the problem of how to make the best use of limited, or scarce, resources. The economic problem exists because, although the needs and wants of people are endless, the resources available to satisfy needs and wants are limited."

With reference to the statement above, you are required to carry out a research by selecting one macroeconomic problem faced in your economy and discuss the following:

1. Causes of the macroeconomic problem.

2. Effects of the problem on the economy.

3.Macroeconomic policies that could be implemented by the government to overcome the problem.