Macroeconomics Answers

Discuss the fuel tax increase impact the economic growth of S.A

Discuss the fuel tax increase impact the public social welfare

Briefly discuss the relationship between increase on fuel taxes and public social welfare as

well as economic growth in South Africa, make reference to other studies/literature

Briefly define fuel taxes and economic growth

What is Kuznets’ Puzzle? Explain how the life cycle hypothesis resolves it.

Is there an inflationary or deflationary gap and what is the size?

What is the level of withdrawals?

What is the government expenditure multiplier? (Assume that all expenditure is made on

domestically produced goods)

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

An economy is currently in equilibrium. The following figures refer to elements in the national

income accounts.