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Macroeconomics
You are given the following information about a closed economy with no government:
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending
Macroeconomics
Which of the following statements is incorrect?
[1] Induced consumption does not require income.
[2] People always consume even if income is zero.
[3] Consumption increases by less than the increase in income.
[4] There is no relationship between consumption and interest rates
[1] Induced consumption does not require income.
[2] People always consume even if income is zero.
[3] Consumption increases by less than the increase in income.
[4] There is no relationship between consumption and interest rates
Macroeconomics
If the marginal propensity to consume increses:
1. The slope of the function will be steeper
2. There will be a movement from the left to the right along the consumption function.
3. The consumption function will shift parallel upwards
4. The consumption function will shift parallel downwards
1. The slope of the function will be steeper
2. There will be a movement from the left to the right along the consumption function.
3. The consumption function will shift parallel upwards
4. The consumption function will shift parallel downwards
Macroeconomics
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending. (3)
Q.4.2 Calculate the value of the multiplier. (3)
Q.4.3 Calculate the equilibrium level of income. (3)
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain
your answer. 3
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending. (3)
Q.4.2 Calculate the value of the multiplier. (3)
Q.4.3 Calculate the equilibrium level of income. (3)
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain
your answer. 3
Macroeconomics
Out of 20 million people in the population ,9 million people are in the labour force and 3 million people are unemployed ,therefore the unemployment rate is:
Macroeconomics
Calculate the value of autonomous spending.
Macroeconomics
Consider the following information to answer questions 3.8 to 3.12
Government spending = R450
Exports = R250
Autonomous consumption = R300
Autonomous imports = R150
Investment expenditure = R100
Marginal propensity to consume = 0,6
Full employment level of income = R2 800
3.8 Autonomous expenditure (Ᾱ) is equal to
[1] R1000.
[2] R950.
[3] R1 150.
[4] R800.
Government spending = R450
Exports = R250
Autonomous consumption = R300
Autonomous imports = R150
Investment expenditure = R100
Marginal propensity to consume = 0,6
Full employment level of income = R2 800
3.8 Autonomous expenditure (Ᾱ) is equal to
[1] R1000.
[2] R950.
[3] R1 150.
[4] R800.
Macroeconomics
Identify any three non‐income determinants of consumption
Macroeconomics
if a household's income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8 000, then:
Macroeconomics
Deltra was willing to purchase a dozen cookies for $60 that Deirdre was willing to sell for anything more than $32. If they agreed on a price of $36, how much total value was created in this exchange?
