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determine price and quantity if Q=200-2P+200 and -50+3P
determine the price and quantity if Q=200-2P+200=-50+3P
2.1 Briefly explain the effects of COVID-19 on the world economy (15) 2.2 Assuming a fall in the price of oil, use the AD-AS framework to explain the impact on prices, employment and income. (15) 2.2 Is inflation good or bad? Support your answer with practical examples (10)
1. With reference to the Keynesian approach, explain the main components of aggregate demand. (10) 2. With the aid of a diagram and using the Keynesian analysis, explain in detail how income and aggregate spending are affected by the following a) ‘government should step in and spend’ b) A cut in spending by European firms (20) 3. Explain the consumption function for a closed economy with a government sector (10)
The notion of Structural Adjustment Programmes (SAPs) being effective in, and necessary for, achieving African development would likely be favored by the Bretton Woods institutions— the IMF and the World Bank—the creators of them (Chabal & Deloz, 1999: 119). To assist African development, Structural Adjustment Programmes (SAPs) provided “conditional lending” (Thomson, 2010: 197). Throughout the 1980s and 1990s, the U.S. has been a principal force in imposing Structural Adjustment Programs (SAPs) on most countries of the South.
REQUIRED: Discuss the expected impact and outcome of the Structural adjustment programs (SAPs) provided by the International Monetary Fund (IMF) and the World Bank (WB) in Third World countries with special reference to Zambia. [1 page]
1.Given the Keynesian model:
Y = C + I + G + X – M
Where C = 30 + 0.8Yd; Yd = Y – T; I = 60; T = 50; G = 50
X = 50 – 0.05Y; X is net export:
a.Find the equilibrium national income.
b.Find the net exports balance at the equilibrium national level of income.
C.What happens to equilibrium national income and the net exports balance when net investment increases from 60 to 70?
d.Explain what happens to equilibrium national income and net exports balance when net exports function changes to 40 – 0.05Y. (5 marks each)
1. What is operation risk. Explain how operation risk might happen in bank by giving examples
A profit - maximising firm sells it product for R300, but continues to produce even though it is making a loss. This suggests that
- When a perfectly competitive industry is in a long-run equilibrium, all the firms in the industry will A. earn a normal profit.
- B. earn an economic profit.
- C. earn zero profits.
- D. make an economic loss.
