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Macroeconomics
Assume that the economy is in equilibrium at a level of output below that is associated with full employment in the economy.
a. Show graphically, methods by which the economy might be move towards full employment.
b. Which variables would have to be affected in each case to bring about the relevant changes in aggregate supply or aggregate demand?
c. Which of these variables is it most likely that government could influence strongly? Explain.
d. Classical economists believe that if the economy is left on its own, without any intervention such as in a. above, there will be automatic adjustments towards full employment equilibrium. Explain.
a. Show graphically, methods by which the economy might be move towards full employment.
b. Which variables would have to be affected in each case to bring about the relevant changes in aggregate supply or aggregate demand?
c. Which of these variables is it most likely that government could influence strongly? Explain.
d. Classical economists believe that if the economy is left on its own, without any intervention such as in a. above, there will be automatic adjustments towards full employment equilibrium. Explain.
Macroeconomics
Using the Keynesian transmission mechanism, illustrate and explain the effect of an decrease of repo rate in the economy
Macroeconomics
Which of the following is/are not implied by the weak version of Say’s Law?
Macroeconomics
Using the Keynesian transmission mechanism, illustrate and explain the effect of an decrease of repo rate in the economy
Macroeconomics
2. Suppose autonomous expenditure increases by 1 trillion, and as a result, equilibrium income increases by 3 trillion, what is the value of the multiplier?
3. Using a diagram, show the effect of an increase in autonomous expenditure on equilibrium income and expenditure
4. Suppose net investment is R2 000 000 and depreciation is R140 000. What is the value of gross investment?
5. If real interest rate is 4 per cent, and inflation is 7 per cent, what is the value of nominal interest rate?
6. What relationship does the demand for money has with income and interest rate?
3. Using a diagram, show the effect of an increase in autonomous expenditure on equilibrium income and expenditure
4. Suppose net investment is R2 000 000 and depreciation is R140 000. What is the value of gross investment?
5. If real interest rate is 4 per cent, and inflation is 7 per cent, what is the value of nominal interest rate?
6. What relationship does the demand for money has with income and interest rate?
Macroeconomics
Consider the consumption function below and answer the questions that follow: C= 40 + 0.25YD
1.2. What is the value of autonomous expenditure?
1.3. What is the gradient of the consumption function?
1.4. What is the value of total consumption if disposable income is R2500?
1.2. What is the value of autonomous expenditure?
1.3. What is the gradient of the consumption function?
1.4. What is the value of total consumption if disposable income is R2500?
Macroeconomics
Consider the consumption function below and answer the questions that follow: C= 40 + 0.25YD
1.1. Sketch the above function on a graph
1.1. Sketch the above function on a graph
Macroeconomics
Bank C promises to pay a compound annual interest rate of 6 percent, while Bank S pays an 8 percent simple annual interest rate on deposits. If you deposit $1,000 in each bank, after 10 years, your deposit in Bank C equals _____, while your deposit in Bank S equals
Macroeconomics
States like Georgia and Texas are trading partners with trading blocs such as ASEAN, the Association of Southeast Asian Nations. Why are these states such strong trading partners with ASEAN?
Macroeconomics
Suppose the MPC for south Africa equals 9/10. The tax rate = 1/6 and mY = 1/12 if there is a negative spending shock (decreased net exports) of R300 billion, what will be the effect on total production or income in south africa?
