SECTION C: SHORT ANSWER QUESTIONS [30 marks) Answer ALL the questions from this section. Each question is worth 10 marks. Note: Answers that utilise graphs, where appropriate, are likely to score more. Answers are to be handwritten in paper. Please start every question in a new page. Question 1: (a). Explain the difference between perfect competitive market and monopolistic competitive market. [4 marks] (b). Explain and illustrate how a perfect competitive firm will determine the profit maximising output. [6 marks] Question 2: (a). Assume economy is at long run equilibrium. Using AD-AS model, explain the impact on real GDP, unemployment and price level if there is an increase in exports. [5 marks] (b). Explain and illustrate how monetary policy can be used to get the economy back to long run equilibrium. [5 marks] END OF EXAM Take a photo, scan and submit your work BELOW as per Task 2 instructions on the Student Lounge Maximum file size: 2GB, maximum number of files: 1 G Files You can drag and drop files here to add them