Macroeconomics Answers

what is the possible effect of the ACFTA on national consumption within south africa

Calculate the following for the banana republic given the information provided above
a. What is the consumption function?
b. What is the equation of the AE curve?
c. Calculate equilibrium expenditure
d. Calculate the multiplier.

1. A competitive firm faces a price of 136 and a total cost function of TC=7 + q2 + 6q +5
What is this firm's marginal cost function? MC(q)= 14*q+6

2. What quantity should this firm produce? Leave your answer in fraction form (if necessary).

For the case of a more developed economy in Africa (e.g. South Africa), with relevant economic data on current trends, discuss the possible implications or impacts post 2020 of the ACFTA on the following variables: a) National consumption within South Africa
b) Investment by local stakeholders into the continent
c) Net exports
d) Government trade revenues
e) Potential employment effects within the country and on the continent

In balance of payments debit means inflow and credit means outflow then why debit which is inflow is symbolized with -negative and credit as +positive please let me know with suitable examples

Consider an economy that is represented by: C= 8,000+0.75Yd I= 4,000-400i G= 6,000 T=0.2Y L=0.2Y-100i M=60000 P=20, Compute for the values of equilibrium levels of output and interest rate

The exchange rate between the Banana Republic dollar (B$) and the US dollar (US$) was B$14.50 to US$1 in 2017,and the exchange rate between two currencies is B$1 to US$0.08 in 2018. A trader, Tom, bought second hand smartphones cost $100 in both the year 2017 and 2018.
A)what is the exchange rate between B$ and US$ in 2018 if we use direct quoting method?
B) what happens to the B$ VS US$ exchange rate from 2017 to 2018?
C) if Tom sells the phones for B$2000 locally online, in which year would Tom make a higher profit? Show your calculation to substantiate your answer.

Explain the relationship between the effectiveness of monetary policy and the interest elastic-
ity of investment. Will monetary policy be more or less effective the higher the interest elastic-
ity of investment demand? Now explain the relationship between the effectiveness of fiscal
policy and the interest elasticity of investment demand. Why do the two relationships differ?

Question 4
External shocks affect the internal economy. Given the case below and using the IS-LM-BP model to graphically analysis and explain how this comes about.
Case: The case of recovery after the worldwide recession in the early 1990’s led to a rise in foreign income: Floating ER, Limited Capital Mobility. (4 marks)

Question 3

1. Distinguish between internal and external balance. (2 marks)
Given each cases below, answer the questions that follow using the IS-LM-BP model to graphically analysis and explain.

Case 1: The case of Argentina in 2001: Fixed ER, Limited Capital Mobility.
Case 2: The case of U.S.A and Canada: Flexible ER, Perfect Capital Mobility

2. Explain the effects of Expansionary Fiscal Policy and Expansionary Monetary Policy.
(6 marks)
3. Explain whether each of the policy above may enable the economy to achieve internal balance. (2 marks)
4. Explain the repercussions of each policy to the external sector, therefore external balance.
(2 marks)