Macroeconomics Answers

Explain the determination of equilibrium level of GDP using the aggregate expenditure approach and the savings investment approach in a two sector model. Do you think that equilibrium will always occur at full employment level of output?

If the demand and supply curve for T-Shirts at Nagindas Store are:

D = 100 - 6P, S = 28 + 3P

Where P is the price of T-Shirts in dollars ($), what is the quantity of T-Shirt bought and sold at

equilibrium?

Q

Economic theory suggests that two countries can benefit from trade even if one country is more efficient at producing everything. What concept does this theory describe?

International economic development does not affect the South African economy?

Suppose that the monetary base increased by $1.1 billion. If Required reserve ratio and currency deposit ratio called by the public was 20% and 15% respectively. Calculate the increase in money supply.

According to the Keynesian consumption function, a decrease in income will cause in savings and_______in consumption.

Assuming that tax revenues are $7 Billion and Consumption is $60 Billion How much is the level of savings? (5mks)

Suppose a woman marries her chief manservant. After they are married, her husband continues to wait on her as before, and she continues to support him as before (but as a husband rather than as an employee): How does marriage affect GDP?

Assume that the rand/dollar exchange rate is above the equilibrium exchange rate. This will lead to a

Provide a brief explanation on how the South African economic growth had been performing

since 2000. Further, what conclusions can be drawn from fuel tax increase effects on the

economic growth and public social welfare.