use a diagram to illustrate that investment is an autonomous variable with respect to the level of output and income.(10) 2.
1.use a diagram to illustrate that investment is an autonomous variable with respect to the level of output and income.(10)2.Graphically, explain the demand for goods function and indicate the equilibruim position. (10)3.Explain the determination of the equilibruim interest rate on the financial market.(10)4.Explain the impact of the monetary policy in the IS-LM model.Make use of diagram to explain the adjustment process from short-run equilibruim to medium run equilibruim.5.”An increase in government spending, given the level of taxation, causes an increase in the budget deficit and will eventually affect the trade balance. Discuss this statement critically. (20)6.Explain with the aid of a diagram the end result of a decrease in the money supply
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