Macroeconomics Answers

Assess the possible measures which the government might use to persuade passengers to travel by rail rather than other forms of transport. In your answer you should consider any disadvantages of these measures as well as the positive benefits and should include a discussion of taxes, subsidies, price controls or changing the cost of other forms of transport relative to rail travel 

Use a diagram to illustrate and explain the effect of a credit rating downgrade in South Africa on the dollar-rand exchange rate.

Briefly explain any two determinants of investment spending

According to the case study, the fuel price increase is one of the main factors resulting in an increase in inflation. Use an AD-AS diagram to illustrate and explain the type of inflation implied by the fuel price increase. (

Which of the following statements is/are correct?

a. In inflationary times the function of money as a store of value is undermined.

b. An individual’s income will always be equal to the amount of money he or she possesses.

c. The most basic function of money is that it serves as a medium of exchange.

[1] All the statements are correct.

[2] a and b

[3] a and c

[4] b and c

[5] a

Transfer payment can be described as

[1] The transfer of income by the government from surplus units to deficit units.

[2] The transfer of income by the financial institutions from surplus units to deficit units.

[3] The transfer of income by the government from the wealthy to the poor.

[4] The transfer of income by the firms from the wealthy to the poor.

 Using diagrams and the concept of elasticity of demand to support your answer, explain how both UK rail companies and airways go about filling seats in order to maximise revenue?

What is the budget where tax collected exceeds the required expenditures?

. It is sometimes argued that economic growth that is "too rapid" will be associated with inflation. Use the Aggregate Demand and Aggregate Supply model to show and explain how this statement might be true and which shock is assumed to be hitting the economy?

Inflation is unexpectedly higher than anyone anticipated. In this scenario would you rather

be a lender or a borrower?