Macroeconomics Answers

3.1The following data (R billions) are for a closed economy (Ga-Rankuwa Republic)
over 2019.
• Total Output: R 30
• Total Income: R 30
• Consumption: R 22
• Government Spending: R 6
• Total tax revenue: R 5.5
• Transfer payments: R 1.5
Use the above data to calculate:
a. disposable income, savings and net taxes.
b. Is the government running a budget surplus, budget deficit, or balanced
budget? Demonstrate.
c. Determine planned investment. (note that investment is equal to the sum of
private and public saving)

Central bank want to check the clarity of the market among the commercial bank which tool is used show graphically

3.1The following data (R billions) are for a closed economy (Ga-Rankuwa Republic)
over 2019.
• Total Output: R 30
• Total Income: R 30
• Consumption: R 22
• Government Spending: R 6
• Total tax revenue: R 5.5
• Transfer payments: R 1.5
Use the above data to calculate:
a. disposable income, savings and net taxes.
b. Is the government running a budget surplus, budget deficit, or balanced
budget? Demonstrate.
c. Determine planned investment. (note that investment is equal to the sum of
private and public saving)

C=200+0.5(Y-T)
T=100+0.2Y
Nx=150-0.2Y
I=300
G=400

a) What is the value of government budget deficit/surplus?

b) Assume that the government introduces an insurance of 2% to the households show this will affect consumption and determine the new equilibrium level of income.

Which of the following is not an exogenous cause of business cycles # randomize
A. Wars
B. Elections
C. Discovery of new resour
D. Change in business confidence
E. Geopolitics

What is inflation

Which of the following is an example of fiscal tightening? # randomize

A. Business spending more because they are more optimistic about the economy

B. Consumers spending more because they expect high income in future

C. Foreigners buying more local goods because of higher income

D. Government reducing the size of its deficit

E. Central bank raising interest rates to fight inflation

explain circular flow of incom in 4 sector model

C=200+0.5(Y-T)
T=100+0.2Y
Nx=150-0.2Y
I=300
a=400

a) What is the value of government budget deficit/surplus?

b) Assume that the government introduces an insurance of 2% to the households show this will affect consumption and determine the new equilibrium level of income.

Why depiciation is added while
calculating GDP in income approach?