Macroeconomics Answers

. Which of the following is/are correct regarding the distinction between macroeconomics and
microeconomics?
a) Salaries paid to Checkers employees is an example of a macroeconomic variable.
b) An import by Auto Spares of a new machine for painting cars is an example of a
microeconomic variable.
[1] only a is correct
[2] both a and b are correct
[3] only b is correct
[4] both a and b are incorrect

The circular flow of income and spending reveals that an increase in South African exports will…
[1] increase spending on South African imports by more than the spending on exports.
[2] increase income to South African economy and increase income to South African producers
of goods and services.
[3] increase income to foreign firms and increase income to foreign factors of production.
[4] decrease output and income in the rest of the world.

Muchuu's old Corolla emits alot of carbon such that it contaminates the entire compound ,this emission state is closely related to two depravities you once learnt in class .you are mandated to briefly explain these two economic depravities that affect literally most zambians (hint ,cause , effects and cure )

Choose the correct answer
Suppose the central bank decides to pursue an expansionary monetary policy. Using the AD-AS model, what will be the impact in the economy?
A. Levels of total production will increase, while price levels decrease.
B. Levels of total expenditure will increase, while price levels decrease.
C. AD curve will shift to the left, showing a decrease in nominal GDP.
D. AD curve will shift to the right, indicating an increase in real GDP.

Choose the correct answer
Over a period 2015-2019 South Africa experienced an increase in outflow of capital and a decline in capital inflows. The likely impact would be_______
1. a weaker rand against major foreign currencies and an increase in the demand for net exports.
2. a decrease in the demand of net exports and a leftward shift of the AD curve.
3. an increase in interest rates and depreciation of the rand against major foreign currencies.
4. a stronger rand against major foreign currencies and an increase in the demand for net exports

4.4. is the equlibrium level of income also the full employment level of income ? explain your answer

Consumption =115+0.6y
Investment = 550

4.3 Calculate the equilibrium level of income

4.5 Identify any three non-income determinants of consumption

Choose the correct answer
A decrease in the marginal propensity to import results in
[1] A decrease in the multiplier.
[2] Less domestic consumption.
[3] A decrease in aggregate spending.
[4] Less foreign exchange flowing out of the country.

The difference between government spending and borrowing is called