Economics Answers

How does a fuel levy rise affect the delivery of public social welfare of a country

Briefly discuss the relationship between increase on fuel taxes and public social welfare as well as economic growth in South Africa, make reference to other studies/literature

The individual's demand curve for a commodity represents a maximum boundary of the individual's intentions True or False, explain

Discuss the fuel tax increase impact the economic growth of S.A

Which of the following factors will cause a movement along the AD curve?

a. The government decides to fund small businesses in Limpopo.

b. The minister of finance together with the panel decide to reduce taxes.

O d. The increase in fuel price, that results in an increase in the general price level.

O c. The central bank decides to increase the repo rate.

Within the AD-AS model, what will be the impact of expansionary demand management policy on the economy?

a. real output and the price level will increase, while unemployment decrease.

c. aggregate supply will decrease and the price level increase.

d. total production and employment will increase, while inflation decrease.

O b. aggregate demand will decrease and the price level increase.

Which of the following statements is correct regarding the AD-AS model?

a. In the simple Keynesian model, prices are assumed to be variable.

O b. A decrease in aggregate demand is accompanied by a rise in total production and income.

O c. Higher unemployment accompanied by lower inflation rate is referred to as stagflation.

O d. A simultaneous increase in aggregate demand and a decrease in aggregate supply, will lead to an increase in the price level.

According to the classical cash reserve system, which of the following statements is/are true regarding banks in South Africa?

(a) They are required to hold a minimum cash reserve of 2,5% of their deposits.

(b) The level of the repo rate influences the interest rate at which the banks provide credit to individuals.

(c) The SARB provides cash reserves through accommodation policy to the banks experiencing liquidity shortage.

a. (b)

O b. (a)

c. (a) and (b)

O d. (c)

e. (a), (b) and (c)

In the AD-AS model, an expansionary fiscal policy may lead to a...

a. rightward shift of aggregate demand and demand-pull inflation..

d. leftward shift of aggregate supply and cost push inflation.

b. leftward shift of aggregate demand and demand-pull inflation.

O c. rightward shift of aggregate supply and cost-push inflation.

The vertical distance between the average total cost curve and the average variable cost curve