Macroeconomics Answers

calculate nominal economic growth rate

GDP at current prices and constant prices in economy x

Discuss whether a country should impose more trade restrictions

How would each of the policies listed in parts (a) through (b) change the Tanzi–Olivera effect?

Requiring monthly instead of yearly income tax payments by households.

Assessing greater penalties for under-withholding of taxes from monthly paychecks.

Decreasing the income tax and increasing the sales tax.

First, explain what seigniorage is. Second, write out and explain the expression that represents seigniorage. And finally, what policies can a central bank implement to increase seignorage

Discuss the various stages of economic development                                                            (5 marks)

1. Analyze how an unfavorable movement in the terms of trade is likely to affect a country,

a.     Balance of payments on current account    (4 marks)

b. Living standards.                                    (4 marks)

how does the government use concepts of elasticity while deciding which goods to tax and how those decisions impact the government revenue

Discuss South Africa as: 

 i. An upper middle income economy. ii. A commodity-based economy. iii. Small 

open economy. iv. Dualistic economy. vs. safe-haven economy. 

a. Clearly explain any 3 characteristics of a developing economy. 

b. Mention any five challenges to the South African economic growth.

c. Which challenge is at the top list of South Africa’s priorities and why?

d. Mention the three main rating agencies.