Macroeconomics Answers

Answer True or False, then justify your response with practical economic examples:                                             

a.      Macroeconomics is a subject matter that can easily be subsumed and studied under applied microeconomics.                                                                (5 Marks)

Briefly discuss the relationship between increase on fuel taxes and public social welfare as well as economic growth in South Africa

Which of the following can cause demand-pull inflation? [1] A decrease in interest rates which leads to an increase in consumption and investment spending. [2] An increase in government spending on social wealth and education. [3] A rise in the cost of imported intermediate goods due to a depreciation of the domestic currency.

Briefly explain how Nozick’s entitlement theory can be applied to the land issue in South Africa.

Choose the INCORRECT option:

(a) Only in one of the labelled points we will find production equals aggregate demand

(b) If we are in C, we know that consumption will tend to increase

(c) If we are in B, we know that investment will tend to increase

(d) In F there is excess supply of goods (e) None of the points identified in the graph is the short run equilibrium

How does a fuel levy rise affect the delivery of public social welfare of a country

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

What divides the area of inequality and varies from 0 to 1.

Demand-pull inflation can be combated by …

a. 

raising interest rates.

a. raising interest rates.

b. 

lowering interest rates.

b. lowering interest rates.

c. 

increasing government spending.

c. increasing government spending.

d. 

decreasing personal income tax.