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1.2 The spread of COVIC-19 across all countries of the world resulted in resorting to various forms of
lockdown measures. The locks down measures crippled many economies including the South African
Economy. To resuscitate these economies, there is renewed interest in fiscal policy as a tool
macroeconomic policy. Critically discuss the shortcomings of anti-cyclical policy .
Define social security, critically discuss the effects of social grants on incomes and welfare
C=50+0.8Yd
I=100
G=200
X=250
M=20+0.25Y
T=50+0.2Y
TR=100
a) calculate the equilibrium income and multiplier
b) calculate the budget stands
c) suppose the tax rate increase to 0.25. what will be new multiplier and equilibrium income.
d) calculate the change in budget stands.
e) would you expert the change in the budget stands to be more or less, if marginal propensity to consume were to be 0.9 and not 0.8.
in a simple Keynesian model, Which of the following is incorrect. I represent total investment spending, Y represents income, MPC and MPs equal to one, induced consumption is a fraction of income
Suppose a survey by the Department of Roads in 2019 revealed that 60% of the vehicles travelling on Suva-Nadi Highway, where speed limits are posted at 80 kilometres per hour are found to be exceeding the limit. Suppose you randomly record the speed of 10 vehicles travelling on the highway as part of your internship. The sample size of the entire survey is not disclosed to you.
Compute the following probabilities. Showing all working.
a) P (X = 2).
b) P (X = 5).
c) P (X = 10).
Develop a permanent income and adaptive expectations model by permanent life cycle and show its differences from permanent income hypothesis in empirical work analysis?
Give examples of direct tax
what do we deduct from GNP to arrive at NNP ?
Suppose a perfectly competitive industry can produce Roman candles at a constant marginal cost of R12 per unit. Once industry is monopolized, marginal costs rise to R16 per unit because R4 per unit must be paid to lobbyists to ensure that only this firm receives a Roman candle license. Suppose the market demand for Roman candles is given by
Qd=1500-25P
And Marginal revenue curve by
MR= 20-Q/25
Calculate the monopoly price
#339914 on Dec 2023