Macroeconomics Answers

hich of the following explains why redistribution occurs during inflation?

a) Rising prices fail to signal desirable changes in the mix of output.

b) Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth.

c) Relative prices remain unchanged.

d) All loans are indexed to inflation

Given the information in the extract, the Simple Keynesian Macroeconomic Model concludes the following

about the South African economy in 2006. (4 marks)

a) Excess demand

b) Excess supply

c) Macroeconomic equilibrium

d) Aggregate spending is less than output

“Periods of economic instability” are in line with which of the following views of the business cycle?

 If the government imposes a $20 floor price for this good or service, would a surplus or deficit situation ensue on this market? If yes, what is the dollar value of this surplus or deficit? 

Q3. Suppose that people consume only three goods, as shown in this table: Tennis Balls Golf Balls 100 Plus 2006 Price RM2.00 RM4.00 RM1.00 2006 Quantity 100 100 200 2007 Price RM2.00 RM6.00 RM2.00 2007 Quantity 100 100 200 a. What is the percentage change in the price of each of the three goods? b. Using a method that similar to the consumer price index, compute the percentage change in the overall price level. c. If you were to learn that a bottle of 100 Plus increased in size from 2006 and 2007, should that information affect your calculation of the inflation rate? If so, how? d. If you were to learn that a bottle of 100 Plus introduced new flavors in 2007, should that information affect your calculation of the inflation rate? If so, how?

The central bank of your assigned Caribbean country decides to pursue an expansionary monetary policy. (i) Identify one possible action they could take. (1 mark) (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (5 marks) (iii) Illustrate the overall impact of the chosen action on the money market. (3 marks)

how does an increase unemployment affect the is lm model macroeconomics. use diagrams

What was the annual PPI rate for final manufactured goods for July 2021?

A.7.0% B.0.8% c.5.3% d.7.1%

Which province recorded the highest consumer for the month of September 2018

a.Limpopo b.Western Cape c.Free State d.Gauteng

Which year is used as abase year inflation in South Africa

a.2010 b.2008 c.2012 d.2016

How many Sustainable Development Goals are there

a.10 b.17 c.5 d.8

Which one of the following countries is not a member of African Union (AU)

a.Nigeria b.Yemen c.Angola d.South Africa

Prove that the open economy multiplier is the reciprocal of the sum of marginal propensity to save (MPS) and marginal propensity to import (MPM).

A two sector economy has a total income of rs 150 billion and marginal propensity to consume (MPC) is 66.67%. How much does this economy needed to invest once for all to increase it total income by 100%.