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How can monetary policy be used to achieve price stability
Revenue 700 000
Purchases 187 000
Transport 25 000
Wages and salaries 156 000
25 percent of 525 000 interest on loan for 2 years ago
5000 rent per month

Calculate GDP using income or factor payments approach

Why is it important to express the government budget balance as a percentage of GDP


An the economy of Keynesian Island, autonomous consumption expenditure is $50 million, and the marginal propensity to consume is 0.8. Investment is $160 million, government expenditure is $190 million, and net taxes are $250 million. Investment, government purchases, and taxes are constant—they do not vary with income. The island does not trade with the rest of the world. a)Draw the aggregate expenditure curve. b)What is equilibrium real GDP for Keynesian Island? c)What is the size of the multiplier in Keynesian Island's economy?(d)If the government increases its purchases by $200 million, what will be the change in the economy's equilibrium real GDP? Show the change on the graph as well.
Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $27 to you. One of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands. He offers you $70 for the bicycle, and you gladly accept. Your friend is also happy because he thinks the bicycle is worth $109. How much total value was created from this trade?

Explain in detail, with the aid of a graph the component of the demand for money

Identify the main determinant of each component

In your graph illustrate each component as well as the total demand for money


2. Explain with the aid of a graph, the impact of a cut in the interest rate on the demand for money


3. Many economists argue in favour of the South African government should implement a policy of privatization. Argue in favour of a policy of privatization


If the minister of finance wanted to withdraw funds from the economy using the flows of income ,spending and production ,you would advise him...

roles of financial institutions in the circular flow of income and expenditure


Suppose the bank of namibia undertakes an open market purchase of securities of so that the monetary base increases by $5 billion. By how much will the quantity of money change
in the circular flow of income and spending in South Africa, ______firms in the factor market becomes ______ households, while _______ households in the good market becomes_______firms. Expenditure by foreigners on South Africa products constitutes___________the circular flow.

1. income to; spending by; income to;spending by; a leakage from
2.income to; income to; spending by;spending by; an injection into
3.spending by ; income to; spending by;income to; an injection into
4. spending by; spending by; income to; income to; a leakage from
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