Macroeconomics Answers

Paul lends R10 000 to his friend Steven for one year. They agree that Steven would pay the R10 000 back with 5% interest at the end of the year. If the inflation rate is 6% at the end of the year, which of the following would be true for the real value of the amount that Steven pays back ?

Jane earns an income of R10 000 a month and pays R1 500 towards income tax, and when her income increases to R24 000 a month, she now pays R3 600 towards income tax. This is an example of a?

If reserve bank wants to pursue a contract on any monetary policy, the bank should

 Explain and demonstrate using appropriate examples how elasticity when it is zero is applied at the level of the government with respect to the setting of prices for various types of goods and services.

the very poorest low income developing countries typically have relatively

if government uses fiscal policy to restrain cost push inflation you can expect

suppose the government implements a price ceiling of $20/unit in this market. Is this price ceiling binding on the market? What are the quantities demanded and supplied at the price ceiling? How many units are exchanged at this price? Given the effects of the policy, is there a potential for illegal trade? Briefly explain your answers where necessary.

QS=QD

-20P + 2P = 100 - 2P

4P = 120

4P / 120 

P = 30

Q = 40

(a)  Graph the supply and demand curves. Be sure to calculate the P and Q intercepts for demand and the P intercept for supply. Calculate and illustrate the equilibrium price and quantity. [Hint: Show your work. (b)  Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method. (c)  Suppose the government implements a price ceiling of $20/unit in this market. Is this price ceiling binding on the market? What are the quantities demanded and supplied at the price ceiling? How many units are exchanged at this price? 

Given the effects of the policy, is there a potential for illegal trade? Briefly explain your answers where necessary.

Describe the reaction of NPK and full employment if the following events occur in the Bahamas.)

a. The deportation of all illegal migrants from around the Bahamas.

b. The Moody’s report on direct foreign investment and consumer confidence.

c. The implementation of payment for the travel visa and Covid-19 testing

Question 2.

The FNM government prior to the 2021 general election, introduced a school lunch program that covered all public-school children. Assume that this program is temporary and only lasted eight months. For a constant level of output, what impact would this program have on desire consumption and desire national saving.