Macroeconomics Answers

Conduct your own research on the 2018/19 budget and fiscal policy in South Africa. Provide your own detailed analysis of the fiscal policy

A price ceiling established below the market clearing price will usually cause?

If consumption = 115 +0.6y
And investment =550

What is the value of autonomous spending AND the multiplier

Out of 20 million people in the population, 9 million people are in the labour force (2) and 3 million are unemployed, therefore the unemployment rate is:
(1) 3 percent.
(2) 15 percent.
(3) 30 percent.
(4) 33,3 percent.

Suppose a 10 percent increase in the quantity of lettuce demanded is observed as a result of a 40 percent decline in its price. Then the price elasticity of demand for lettuce is

Suppose the total production declined due to the high cost of labour. This will be illustrated within
the AD-AS framework by a__________.
[1] movement along the AS curve
[2] rightward shift of the AS curve
[3] leftward shift of the AS curve
[4] leftward shift of the AD curve

If nominal GNP increases over a time then real GNP will also increase with time. True/False? Explain your answer

Explain in detail the process of Monetary Policy transmission of a decrease in the cash interest rate. Use relevant graphs to describe how a Central Bank’s action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should be used: (1) money supply and demand (2) investment demand schedule (3) AS/AD diagram. Interest rates is the variable that connects the first and second diagram).

Assume that the central bank announces a rise in interest rates and backs this up with open market operations. What determines the size of the resulting fall in aggregate demand?

Why will the multiplier effect of government transfer payments, such as child benefit,
pensions and social security benefits be less than the full multiplier effect from government
expenditure on goods and services?