Macroeconomics Answers

Qd(=50-8P) and Qs(=17.5+10P)

Explain what the IS curve represents

a. Given the following simultaneous equations:

y=2x2+3x+2

And

y=x2 +2x+8

Solve for x and y.

what is consumption function

Evaluate the following argument: ‘Since pollution is a negative externality, it would be socially optimal to declare illegal the use of any production process that create pollution’.

1.    Explain the concept of emotional awareness.

1. Broadly discuss how this concept impacts on our behaviour.

Explain the concepts of self-knowledge and self-awareness.

Suppose a firm producing coffee provides you with the following information:

Price = R100

Quantity = 150 units of coffee

Cost of production = R9 500

7.3.1. Calculate the total revenue of the firm. (1)

7.3.2. Is the firm currently making a profit or a loss? Explain. (2)

Which of the following is correct regarding the effect of expansionary monetary policy in the Keynesian model?

a. 

The consumption function swivels downward showing a fall in aggregate spending and income.

a. The consumption function swivels downward showing a fall in aggregate spending and income.

b. 

The aggregate spending curve will shift downward showing a fall in aggregate spending and income.

b. The aggregate spending curve will shift downward showing a fall in aggregate spending and income.

c. 

Investment spending will increase, which is shown by an upward shift of the aggregate spending curve.

c. Investment spending will increase, which is shown by an upward shift of the aggregate spending curve.

d. 

Firms will choose to invest less.

Suppose the sanctions are imposed on South African economy decreased the marginal propensity to import, how will the size of the multiplier be affected?

a. 

It will stay the same.

a. It will stay the same.

b. 

It will increase.

b. It will increase.

c. 

It will decrease.