Question

Suppose when an African Painter MS. Kelly went to spend the holidays of summer in Germany and she is touring the Museum, Zoo and Palaces. She has purchased a Camera and Mobile Phone from Germany. Along with that, she has used some Hotel and Saloon Services also in Germany.

1) Analyze the situation of Ms. Kelly and identify how Ms. Kelly's tourism to Germany affected the Net Export of Africa? Whether it is increased or decreased or no change? Justify your answer.

2) Decide and explain the Net export demand factor/s which is applicable in this situation and why?

3) Find out and explain any three areas for which Government demands the goods and services. Give real names for goods and services from Oman. Is this being a part of Aggregate expenditure or Aggregate Supply? (6 marks: 2 marks each for service or good demanded by the government)

!"#$%&'()*

Answer 1