Macroeconomics Answers

In years 2000 and 2010 Country ABC’s real GDP per capita were $18,297 and $31,445 respectively. What was the annual real GDP per capita growth rate between 2000 and 2010?

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour
hours as your quantity variable.

Italy’s government providing the income support to laid-off workers. How would this step by the government of Italy affect the output in the short run in Italy using IS-LM framework.

Suppose the government decides to pursue an expansion army fiscal policy. Within the AD-AS framework, what will be the impact on the economy?
1.Aggregate supply in the economy will decrease at various price levels.
2.Aggregate demand in the economy will decrease at various price levels.
3.Total production and employment will increase, while inflation decrease.
4.Real GDP, the general level of prices and employment will increase

If the government decides to increase personal income tax to raise its tax revenue, what will be the impact on the economy?
1.Both the price level and the equilibrium level of real output will decrease.
2.Both aggregate demand and aggregate supply will increase.
3.Price level will increase, and total production will decrease.
4.Price level will decrease, and total production will increase.

: https://www.news24.com/SouthAfrica/Local/Stanger-Weekly/sa-domestic-workers-toget-higher-minimum-wage-20190109-with the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labor hours as your quantity variable2

The cost of production in the South African (SA) economy accelerated, due to rising prices of electricity and petrol in the country, which led to an increase in the prices of domestic goods and services relative to foreign goods and services. This will likely lead to a (n)...
1.Increase in the net export and aggregate spending in the South African economy.
2.Inrease in the demand South African goods by foreign countries.
3.Increase in the quantity of goods and services demanded in the South African economy.
4.Decrease in the quantity of goods and services demanded in the South African economy.

Aggregate spending will increase if...
1.real wealth falls
2.interest rate falls
3.consumption falls
4.investment falls

Based on the international trade effect, how would an increase in the price level in South Africa affect the exchange rate and aggregate demand?
1.Rand will appreciate; the quality of aggregate demand will decrease.
2.Rand will depreciate; the quality of aggregate demand will increase.
3.Exchange rate will remain unchanged; the aggregate demand will decrease.
4.Exchange rate will increase; the aggregate demand will increase.

Consider the following information to answer questions Government spending = R550 Exports = R330 Autonomous consumption = R280 Autonomous imports = R170 Investment expenditure = R120 Marginal propensity to consume =0,75 Full employment level of income =R5700

What is the marginal propensity to save?
a. 1
b. 1.60
c. 0.25
d. 0.40