Macroeconomics Answers

Hi! How are you? I would've like to what negative effect would arise if the government decided to put a price ceiling on cellphone and internet services and save Canadians almost $250 per year. I need to link economics subjects such as supply and demand, AS/AD model, opportunity cost, unemployment, GDP, inflation, etc.

Explain, with the aid of a graph, the demand‐pull inflation. In your answer, consider the following:
 Graphical illustration of the demand‐pull inflation (5)
 Provide any three of your own examples/scenario that might cause the demand‐pull
inflation (6)
 Recommend the policy tools to use in order to curb each type of inflation mentioned
above (4)
You will receive more marks for your own original examples than for examples in your
textbook, from your lecturer, or on Learn.

Explain, using the AD‐AS model, how the South African Government can use
fiscal policy as a tool to recover from the negative effects of this COVID‐19
pandemic.
Your answer must include the following:
 The description of the type of fiscal policy required; (4)
 An explanation of how the implementation of this tool will work their way
through the economy to achieve the desired effect; (6)
 The AD‐AS graph showing the implications of your recommendations. (5)
Marks will be awarded for your ability to integrate theory with the scenario
provided.

The monetary transmission mechanism can be depicted in the form of a graph
or using symbols.
Explain, with the aid of symbols, the monetary transmission mechanism when
interest rates increase
(Note: Prices and wages are variable.) (10)

C=50+0.75Y
1. At what level of income saving become zero?
2. If autonomous investment with above consumption function is 200.at what level saving is equal to investment?

The monetary transmission mechanism can be depicted in the form of a graph or using symbols. Explain, with the aid of symbols, the monetary transmission mechanism when interest rates increase

Would the implementation of land expropriation without compensation unlock greater economic growth or damage in further in South Africa?Illustrate your answer by using international experience

7.2
Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below:
COMPONENT
R millions
Consumption expenditure (C) Investment (I)
Government spending (G) Exports (X)
Imports (Z)
Depreciation
Foreign payment to the rest of the world
Foreign payment from the rest of the world
Show all calculations and formulae.
9 000 6 500 7 000 1 800 2 400 700 300
250
© The Independent Institute of Education (Pty) Ltd 2020
Page 9 of 10

20
2020
Q.7.2.2 Q.7.2.3 Q.7.2.4
Compute the value for the country’s GDP (Gross Domestic Product) (2) at market price.
Determine the value of the country’s NNI (Net National Income) at (3) market price.
If it is predicted that the GDP will increase to 22 000 in 2020, (3) calculate the growth rate between 2019 and 2020.
END OF P

The monetary transmission mechanism can be depicted in the form of a graph
or using symbols.
Explain, with the aid of symbols, the monetary transmission mechanism when
interest rates increase
(Note: Prices and wages are variable.)

If the price of a product decreases by 5% and the quantity demanded increases from 115 to 120, what is the price elasticity of demand for this product?