1 compulsory question based on scenario, 50 marks available. Recommended time for this section: 60 minutes. Write your answer in a separate answer booklet. You are given a set of macroeconomic data for a country. Recommend the most appropriate set of economic policy measures for this country in given circumstances, and justify your point of view. In your answer: 1. You can refer to any tools of economic policy which might be relevant and beneficial. 2. Using relevant macroeconomic theory, explain how your suggested policy will affect your economy both in the short- and long term. Sketch graphs of relevant models or use any other suitable methods to illustrate your point. (30 marks) 3. Discuss both advantages and disadvantages of the suggested policy, if relevant compare with alternative options. (15 marks) 4. Summarise your arguments and evaluate your suggested policy mix. (5 marks)
