Tutorial for the 11th week Practice QuestionsYou are expected to submit the answer for this tutorial on 11nd January 2017.

. “Flexible exchange rate is more favorable than fixed exchange rate in order to maintain the favourable external balance and enhance export competitiveness in a country”. Evaluate the above statement (25 Marks) Critically evaluate any 5 (FIVE) macroeconomic problems associated with inflation. (You may use examples from Sri Lanka economic environment.) (15 Marks) Slomans John, Alison Wride 7ed. (2009), Economics.

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Chapter 15, (pp 428 – 438Central Bank publication on “Price stability” document in LMSCentral bank report 2014


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