Economics Answers

During a drought the prize of maize goes up, when the price of potatoes increases, the price of bread also goes up. Using supply and demand diagrams show the two relationship.

Calculate:
1. CPU per basket
2. The inflation rate
If in the CPU basket contain the quantities bought in 2010. The average household spending $60 on juice and $30 on cloth in 2009.When the price of the juice was $2 a bottle and the price of cloth was $5 meter.In the current year 2010 juice is $4 a bottle and cloth is $6 a meter.

Calculate:
1. The unemployment rate?
2. Labour force participation rate
3. Absorption rate give the following :
Labour force 17948000
Employment 13422000
Working age population 32786000

Explain how the inflation rate that is usually reported every Month in the media is obtained,use hypothetical figures for calculations

If simple Keynesian model with no government,taxes or foreign sector
C=100+0,9y
I=50
1. What is the value of the multiplier in this economy?
2. Suppose the level of output that created full employment is 1800.Using the multiplier determine the is the level of investment spending that would create full employment in this economy.

Consider the following numerical example of simple Keynesian model with no government sending , taxes or foreign sector.
C=100+0,9y
I=50
A. What is the value of the marginal prosperity to consume, in this model?
B. Use a graph to illustrate the equilibrium level of output?
C.Calculate the equilibrium level of output?
D. In equilibrium what is the value of consumption spending?use this number to verify that the sum of C and I in equilibrium equals the Value for equilibrium output you obtained above

Calculate the equilibrium level of income if C=R100 million + 0,8y and I =R125 million

Discuss in full the economic implications of the loan agreement by china to South Africa. Refer to advantages and disadvantages of this event for the economic wellbeing of South Africa (25 marks)

You notice two price relationships : when there is a drought the price of maize rises, when the price of potatoes goes up, the price of bread also increases. use a supply and demand diagrams to explain these two relationships

Suppose that, at the market clearing price of natural gas, the price elasticity of demand is -1.2 and the price elasticity of supply is 0.6. If, initially, the price was 10 percent below the market clearing price, then at this initial price there would be:
a. A shortage equal to 1.8 percent of the market clearing quantity.
b. A shortage equal to 0.6 percent of the market clearing quantity.
c. A shortage equal to 18 percent of the market clearing quantity.
d. A shortage equal to 6 percent of the market clearing quantity.
e. (a) or (c) depending on the units of measurement being used.