Macroeconomics Answers

In 2011 the Egyptian Government increased the top rate of income tax. What is likely to have been the main aim of this policy measure?

A   a reallocation of resources from producing necessities to producing luxury products

B   a redistribution of income from the rich to the poor

C   a reduction in the deficit on the current account of the balance of payments

D   a reduction in the level of cost-push inflation

What is NDP? Is it a better or worse measure of output than GDP? Explain.

Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Country B can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true?

Paul lends R10000 to his friend steven for one. They agree that steven would pay the R10000 back with 5% interest at the end of the year. If the inflation rate is 6% at the end of the year, which of the following would be true for the real value of the amount that steven pays back?

Contractionary demand management policies tend to …

Suppose that the central bank reduces the repo rate. What will happen in the AD-AS model?

(a) Investment decreases

(b) Aggregate demand increases

(c) Consumption increases

(d) Income decreases

(e) Prices increase

Suppose South Africa does not export nor import, but there is a government sector. Therefore, South Africa’s total spending formula can be written as…

In an open economy, the depreciation of the rand against the dollar would result in what?

Which of the following variables will not influence the quantity of money that an individual demands?

• A. money stock
• B. the income level
• C. the interest rate level
• D. the price level

If banks experience liquidity shortages, they can borrow from the Reserve Bank through...