Explain the main causes of unemployment, Public Economics

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Problem 1:

i) Define the three main Economic Systems?
ii) How can knowledge on price, income and cross price elasticity of demand, be helpful to the Government and a firm, respectively?
iii) Many of the Eastern European countries who were previously centrally planned economies have placed greater emphasis on market forces . Discuss the reasons behind such a trend.

Problem 2:

i) Explain the main causes of unemployment.

ii) What do you understand by the terms:
a) Demand-pull inflation
b) Cost-push inflation.

iii) To what extent can fiscal and monetary policies be used to deal with a high rate of inflation?


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