Ecs Exam Packs And Study Notes

ECS1601
Together We Pass

Exam Pack 2022




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,Index
Welcome ....................................................................................................................................................................... 3
October/November 2017 Exam .............................................................................................................................. 4
October/November 2017 Suggested Solutions .................................................................................................. 13
May/June 2017 Exam Paper ................................................................................................................................... 16
May/June 2017 Suggested Solutions .................................................................................................................... 27
October/November 2016 Exam ............................................................................................................................ 30
October/November 2016 Suggested Solutions .................................................................................................. 38
May/June 2016 Exam Paper ................................................................................................................................... 41
May/June 2016 Suggested Solutions .................................................................................................................... 52
October/November 2015 Exam ............................................................................................................................ 55
October/November 2015 Suggested Solutions .................................................................................................. 65
May/June 2015 Exam Paper ................................................................................................................................... 68
May/June 2015 Suggested Solutions .................................................................................................................... 77
Thank You .................................................................................................................................................................. 81




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,Welcome

I do hope that the following suggested exam answers would help you in achieving a distinction for
ECS1601. Good luck to everyone for the upcoming exams.

Inside are exam papers and the suggested solutions from 2015 and onwards, so enjoy.




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, October/November 2017 Exam
Section A

Question 1
a) List the three withdrawals from the circular flow if income and spending.

b) Price stability is one of the macroeconomic objectives. List four other objectives.

c) Explain the difference between gross domestic product (GDP) and gross national income (GNI).

d) In the table below, provide any three differences between the consumer price index and the producer
price index.

Consumer Price Index Producer Price Index




Question 2
a) Use examples to explain the difference between contractionary fiscal policy and expansionary fiscal
policy.

b) Consider the following statement and answer the questions that follow:

In 2007, the US economy entered into the worst recession since the Great Depression. Real GDP
declined by 5,1% and the unemployment rate rose from 4,4% to 10,1%.

Use the AD-AS framework to explain how monetary policy can be used to address the problem of
declining output and rising unemployment.

c) Illustrate and explain, by using a diagram, what will happen to the exchange rate between the rand
and the US Dollar if South African tourists to the United States increase.

Question 3
a) Explain why the simple Keynesian multiplier tends to be bigger than the multiplier derived after the
introduction of the government sector.

b) Suppose you are given the following information about the South African economy. Use the
information to answer questions (i), (ii), and (iii).

Income Consumption expenditure Saving
(Billions in rand) (billions in rand) (billions in rand)
0 260 -260
1 100 1 140 -40
1 200 1 220 -20
1 300 1 300 -
1 400 1 380 20
1 500 1 460 -




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