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power. Briefly explain the relationship between labour market behavior and the AS
schedule.
2. Suppose that the economy starts at the natural level of output and that due to reforms in
job protection laws in favor of workers, the AS shifts from its original position.
a. What is the short-run effect on output and prices?
b. What happens to output and prices over time (i.e. in the medium run)?
3. Suppose that the government is running a budget deficit and decides to reduce it by
increasing revenue through increased taxes while leaving its spending unchanged.
(a) Explain the short run and medium run effects of this policy.
(b) Is this decrease in budget deficit always good for investment? Explain.
what is Keynes's explanation about the relationship between output and the price level in the long run?
risk, and less liquidity than another security.” Is this statement true, false, or uncertain? Explain
your answer.
In 2015 the amount of fixed investments in Russia was 13,9 billion Rubles. In 2016 the amount of fixed investments increased by 0,8 billion Rubles in comparison with 2015. During the period from 2015 to 2017, the average annual growth rate of this indicator was 1,05 billion Rubles. Calculate the amount of fixed investment in 2017 year. (billion Rubles):
Evaluate whether or not full empyment policy approach is effective in real life in achieving the desired level of GDP.
In the labour market, explain how the rate of unemployment is related to the bargaining power and nominal wages.
Explain endogenous and exogenous variables in the IS-LM model as well as the labour markets, derive the AD-AS model.
. The South African economy, like most world economies, has been struggling following the COVID-19 pandemic. Give a diagnosis of the health of the South African economy following the changes in it’s macroeconomic indicators in the past 5 years. Your analysis should: (20 marks) Include all macro-economic indicators that explain the health of the macro-economy. link all these macroeconomic indicators to the circular flow diagram. No need to draw it. Give an overview of the South African economy showing the trends in the past decade.
In the simple Keynesian model, which one of the following statements is incorrect
use the expression i=i-ci and the expression for equilibrium interest rate in the is-lm model to derive an expression that measures the crowding out component
#339914 on Dec 2023