Macroeconomics Answers

describe the relationship between the income flow and the expenditure flow as they each relate to Gross Domestic Product (GDP).

The theory of the demand for money is based on John Keynes’ Liquidity Preference Theory.
Give your own detailed explanation of liquidity preference theory and how the demand for money curve is determined. Illustrate your answer graphically.
Note: You should include in your answer a detailed explanation of each component of the demand for money as well as the determinants of these components.

. Mayor George Henry has a problem. He doesn’t want to anger voters by taxing them because he wants to be reelected, but the town of Gapville needs more revenue for its schools. He has a choice between taxing tickets to professional basketball games or food. If the demand for food is relatively inelastic while the supply is relatively elastic, and if the demand for professional basketball games is relatively elastic while the supply is relatively inelastic, in which case would the tax burden fall primarily on consumers? In which case would the tax burden fall primarily on producers?

Which of the following statements is/are correct about money supply?
a. An increase in the bank’s demand deposit will result in a decrease in the required
cash reserves.
b. The quantity of money supplied in the economy is a flow concept.
c. A decrease in the required reserve ratio will cause an increase in the credit multiplier

how do you measure taxation?

Detailed explanation on How can the following be measured:
Gross Domestic Product
State Budget Deficit
Fixed Assests
Consumption
Personal Walfare

Clearly explain the price discrimination a utility provider such as Eskom in South Africa will practice. Discus how this would be different from the type of discrimination that can be applied to flea markets.

The core elements of the Growth Employment and Redistribution (GEAR) strategy of the South
African government in 1996, under the leadership of the then finance minister Trevor Manuel were
amongst other things:
 budget reform to strengthen the redistributive thrust of expenditure
 monetary policy to prevent a resurgence of inflation
 a reduction in tariffs to contain input prices and facilitate industrial restructuring,
compensating partially for the exchange rate depreciation
1.1 With reference to the above, identify the macroeconomic objectives in these elements?

Which of the following statements regarding the import tariff is/are correct? a. A specific import tariff benefits the domestic producers by reducing both the domestic price and the quantity of imports. b. A specific import tariff increases the domestic supply of a good and reduces its domestic price. c. An introduction of the tariff reduces the quantity demanded of a good and increases its domestic price. [1] Only a and b [2] Only a [3] Only c [4] Only b [5] None of the statements are correct

A decrease in the demand for USA dollar ($) in the South African foreign exchange market would result if there is [1] a decrease in the South African exports to the USA. [2] a decrease in the gold price in South Africa. [3] a decrease in the South African tourists to the USA. [4] a decrease in the USA tourists to South Africa.