Macroeconomics Answers

if an economy is experiencing high inflation rate and high unemployment rate simultaneously, an appropriate policy move would be to...
(1) apply an expansionary monetary policy
(2) let the market forces work without any intervention
(3) implement an income policy
(4) apply a restrictive fiscal policy

which one of the following factors will not affect aggregate supply, ceteris paribus?
(1) a decrease in productivity of labour
(2) an increase in government spending
(3) an increase in the price of the factores of production
(4) a decrease in crude oil prices

What are the elements of indifference curve

which one of the following will shift the aggregate supply curve to the left?
(1) a decrease in the general price level
(2) an increase in wages
(3) an increase in taxes
(4) a decrease in the costs of production

which one of the following statement regarding the aggregate demand -aggregate supply (AD-AS) model is correct
(1) the AS curve illustrate the level of total expenditure in the economy at various price levels
(2) the AD curve show the aggregate quantities of a specific product that are demanded at different prices
(3) the AD-AS model seeks to explain the general price level and the total production of goods and services
(4) the AD-AS model cannot be used to determine the changes in the general price level

autonomous consumption C=R300
autonomous investment I= R200
government expenditure G=R600
autonomous net eports X-Z= -R100

marginla propensity to save =1/7
tax rate t=1/8
full employment level =R6000

the equilibrium level of income is
(1) R 1000
(2) R 3000
(3) R 2000
(4) R 4000

autonomous aggregate expenditure is
(1) R 1100
(2) R 1000
(3) R 500
(4) R -R100

the value of the multiplier is
(1) 7
(2) 8
(3) 4
(4) 2

the marginal propensity to consume is
(1) 1/7
(2) 6/7
(3) 0.14
(4) 0.5

to reach full employment, government expenditure should increase by
(1) R 2000
(2) R 3000
(3) R 1100
(4) R 500

given that C=C1+ cy and C1 =500, c=3/4, y =1000
which one of the following statement is correct
(1) autonomous consumption is R1000
(2) induced consumption is R11250
(3) induced consumption is R750
(4) the marginal propensity to save is 3/4

given that C=C1+cy and C1=500, c=3/4, y=1000

which one of the following statements is correct

(1) total consumption is R 500
(2) total consumption is R 1250
(3) aggregate demand is R1000
(4) marginal propensity to consume is 1/4

autonomous consumption c1=R2000
autonomous investment =R6000
marginal propensity to consume c=3/4
the value of the multiplier is
(1) 3/4
(2) 1/4
(3) 5
(4) 4

autonomous consumption c1=R200
autonomous investment =R600
marginal propensity to consume c= 3/4
the equilibrium level of income is
(1) R8000
(2) R32000
(3) R6000
(4) R2000