Macroeconomics Answers

A leftward shit on investment curve Is caused by?

Use the information in the table below to answer Q.3.1 to Q.3.3:
GDP at market prices R397bn
Net primary income payments to the rest of
the world
R37bn
Indirect taxes R23bn
Subsidies R11bn
20 2020
© The Independent Institute of Education (Pty) Ltd 2020
Page 7 of 7
Consumption of fixed capital R32bn
Q.3.1 Calculate the value of gross national income (GNI) at market prices.

you are given the followint information about the close economy with no government:
consumption =115 + 0.6
investment =550
calculate the value of autonomous spending?

GDP at market prices R397bn
Net primary income payments to the rest of
the world
R37bn
Indirect taxes R23bn
Subsidies R11bn
Consumption of fixed capital R32bn
1 Calculate the value of gross national income (GNI) at market prices.
2 Calculate the value of net national product (NNI) at market prices.
3. Calculate the value of net national income (NNI) at factor cost.

is the equilibrium level of income also the full employment level of income

Suppose you are at Interest Parity Condition between Taka and GBP. Explain with Diagram what will happen in the following scenarios:
(a) in the Bangladesh foreign exchange market if the UK Central Bank lowers the Reserve Requirement Ratio (RRR).
(b) in the Bangladesh foreign exchange market if Bangladesh Bank buys bonds from the market

A successful government campaign aimed at advertising South Africa as an excellent holiday destination for European travelers leads to an influx of tourists from Britain.
Graphically illustrate and explain the impact of this increase in tourists on the Rand/ British Pound exchange rate.
Note: Five marks will be awarded for the graph and five marks for your explanation. The axes on your graph should reflect the price and quantity of Pounds.

One of the major objectives of any macroeconomy is economic growth as measured by a country’s GDP. In fact, GDP is one of the most important indicators of the performance of an economy and is the central concept in the national accounts.
Investigate South Africa’s real economic growth rate in 2018 and answer the following questions.






Q.5.1


Explain briefly what the national accounts are.





Q.5.2
Argue whether the real rate of growth in South Africa is acceptable.








Q.5.3
Briefly explain whether you consider real GDP a better measure of economic growth than nominal GDP.






Q.5.4
Research and provide suggestions for how economic growth can be improved in South Africa.

Your prescribed text explains that the money stock (M) can be determined endogenously or exogenously(i.e.therearetwodifferentapproachesto determining the value of M).
Explain which approach is used in the South African macroeconomy.

The theory of the demand for money is based on John Keynes’ Liquidity Preference Theory.
Give your own detailed explanation of liquidity preference theory and how the demand for money curve is determined. Illustrate your answer graphically .
Note: You should include in your answer a detailed explanation of each component of the demand for money as well as the determinants of these components.