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Macroeconomics
2.3 Which one of the following is not a way that the government can intervene in the economy?
[1] participating in the market
[2] changing the repo rate to change the interest rate
[3] regulation by means of policies, laws or rules that affect the economy
[4] changing the tax rate and/or structure
2.4 Which one of the following statements is correct?
[1] Eskom is an example of a nationalised entity.
[2] Nationalisation will attract foreign direct investment, which will increase foreign reserves.
[3] The transfer of ownership from a private enterprise to the government is called nationalisation.
[4] Nationalising an organisation would increase its efficiency.
[1] participating in the market
[2] changing the repo rate to change the interest rate
[3] regulation by means of policies, laws or rules that affect the economy
[4] changing the tax rate and/or structure
2.4 Which one of the following statements is correct?
[1] Eskom is an example of a nationalised entity.
[2] Nationalisation will attract foreign direct investment, which will increase foreign reserves.
[3] The transfer of ownership from a private enterprise to the government is called nationalisation.
[4] Nationalising an organisation would increase its efficiency.
Macroeconomics
Business employees calculated that the expense to produce an additional cell phone is $50. This monetary amount represents a _____
Macroeconomics
What condition is required for the LM curve to be vertical
Macroeconomics
1. Assume an economy where spending for each sector is:
Household: C = 800 + 0.95Q
Business: I = 3000
Public: G = 4000, Tr = 7000, Tx = 1000 + 0.3Q
Foreign: X = 1700, Im = 200 + 0.165Q
Solve for a) Autonomous Spending, b) Spending Multiplier, c) Disposable Income, d) Consumption Expenditure, e) Household Savings,
f) Imports, g) Net Exports, h) Government Expenditure, i) Budget Deficit
2.) Continuing with the previous problem, what happens to the values in parts a-i if we increase Government Purchases by 1500?
3.) Continuing with 2, what happens if Investment Spending decreased by 500?
4.) Continuing with 3, what happens if exports also decrease by 500?
Household: C = 800 + 0.95Q
Business: I = 3000
Public: G = 4000, Tr = 7000, Tx = 1000 + 0.3Q
Foreign: X = 1700, Im = 200 + 0.165Q
Solve for a) Autonomous Spending, b) Spending Multiplier, c) Disposable Income, d) Consumption Expenditure, e) Household Savings,
f) Imports, g) Net Exports, h) Government Expenditure, i) Budget Deficit
2.) Continuing with the previous problem, what happens to the values in parts a-i if we increase Government Purchases by 1500?
3.) Continuing with 2, what happens if Investment Spending decreased by 500?
4.) Continuing with 3, what happens if exports also decrease by 500?
Macroeconomics
Value added tax is an example of which type of taxes?
Macroeconomics
C = 100 + 0.8Yd investment (I) = 200 govt. exp. (G) = 200 export = 1000 import function(M) = 20+0.3Y. Calculate value of multiplier.
Macroeconomics
The short-run total cost function of a firm that employs labour (L) and fixed capital
is given by c = vKo + wq^1/B × Ko^ -a/B
Where w is the cost of the labour
and v is the cost of capital
(I) Derived the marginal cost of the firm
ii. Assuming that the firm is a price taking one that sells its output at p per unit, derive the short-run supply function of the firm
iii. If there are 200 firms in the industry with similar cost conditions, compute the total market supply.
is given by c = vKo + wq^1/B × Ko^ -a/B
Where w is the cost of the labour
and v is the cost of capital
(I) Derived the marginal cost of the firm
ii. Assuming that the firm is a price taking one that sells its output at p per unit, derive the short-run supply function of the firm
iii. If there are 200 firms in the industry with similar cost conditions, compute the total market supply.
Macroeconomics
C=100+0.8Yd
I=200
G=200
X=1000
M=20+0.2Y
(1) Equilibirium output
(2) Value of multiplier
I=200
G=200
X=1000
M=20+0.2Y
(1) Equilibirium output
(2) Value of multiplier
Macroeconomics
If the no-trade domestic price of copper wire in Canada is $20 per unit and the world price is $24 per unit, then Canada will have an excess __________, which it will then __________.
Macroeconomics
Money and Banking
Chapter 19
1. M = 2000, V = 5, Y = 20,000.
a. What does P equal?
b. What does k equal?
c. If M rises to 2500 and V and Y stay the same what does P equal? Show your work
d. Does an increase in V indicate that people want to hold more money or less?
e. Using the original values if V rises to 10 what happens to k?
f. Using the original values if V rises to 10 what does P equal? Show your work
g. If the growth of velocity = 0, the money supply growth = 5%, and output growth = 2%, what is the inflation rate according to quantity theory? Show your work.
Chapter 19
1. M = 2000, V = 5, Y = 20,000.
a. What does P equal?
b. What does k equal?
c. If M rises to 2500 and V and Y stay the same what does P equal? Show your work
d. Does an increase in V indicate that people want to hold more money or less?
e. Using the original values if V rises to 10 what happens to k?
f. Using the original values if V rises to 10 what does P equal? Show your work
g. If the growth of velocity = 0, the money supply growth = 5%, and output growth = 2%, what is the inflation rate according to quantity theory? Show your work.
