Macroeconomics Answers

A country experiences a decrease in the price level and a rise in real output. What combination of the changes in aggregate demand and supply would generate this outcome?

Group of answer choices

An increase in aggregate supply but no change in aggregate demand.

A decrease in aggregate demand but no change in aggregate supply.

A decrease in aggregate supply.

A decrease in both aggregate demand and aggregate supply.

Complete the following statement: At below full employment equilibrium: ......... GDP exceeds .......GDP and there is …… gap.

Group of answer choices

real, potential, recessionary

potential, real, recessionary

real, potential, natural rate of unemployment

potential, real, inflationary

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Which of the following will cause a shift in the short run aggregate supply curve?

(i) An increase in the full employment quantity of labour.

(ii) An increase in GDP.

(iii) A decrease in money wage.

(iv) A change in personal income.

Group of answer choices

Only ii and iv.

i, ii, iii and iv.

Only i and iii.

Only i, ii and iii.

Which of the following events would not involve a supply shock that would shift the aggregate supply curve?

(i) The Cosatu union disintegrates and the minimum wage is abolished.

(ii) African bank plc’s bad debt creates a financial crisis and that leads to reduction in money supply.

(iii) 2016 drought destroys half of the crops farmed.

(iv) A tax on sugar is levied on companies that produce sugary beverages.

Group of answer choices

Only ii and iv are correct.

Only ii is correct.

Only iii and iv are correct.

Only i and ii are correct.

Discuss inequality in South Africa

Discuss poverty in South Africa

Which of the following will cause a rightward shift in aggregate demand?

(i) Expected increase in firm profits.

(ii) A decrease in income tax rates.

(iii) An increase in expected future income.

(iv) A fall in the price level.

The south African economy has been experiencing either negative or stagnant growth for more than a decade. This has resulted in high level of unemployment. President Ramaphosa has promised to come up with a recovery plan as a way of reviving the ailing economy. However, despite the endeavor the government is making, more and more jobs are lost every day. The lesson learnt from other countries facing the same situation as ours is that entrepreneurship ends up as a safe-haven for those who cannot be absorbed in the mainstream of the economy (formal sector).it also serves as the bloodline of the economy.

In light of this, discuss the role that tertiary education can play in order to address unemployment problem in South Africa. (Hint: focus on the role of transforming universities into entrepreneurial universities)