Macroeconomics (ECS2602)

1. The main focus of this macroeconomics module is the study of …. 1. the determinants of the short, medium and long-term growth potential of the economy. 2. only the interaction between the goods market and the financial market. 3. different theories on the determination of output in a closed economy in the short term only. 4. only the determination of the level of output and income and fiscal and monetary policy impact on the financial, labour and foreign exchange markets. 5. the determination of output and the impact of fiscal and monetary policy on the level of output. 2. Which of the following would be included in calculating the gross domestic product (GDP) of South Africa? a. A citizen from Zimbabwe (foreign country) earns a wage at a gold mine in South Africa. b. A farmer from Gauteng (South Africa) buys his neighbour's tractor. c. Ford Motor Company of America builds an assembly plant in the Eastern Cape (South Africa). d. Exports of agricultural products to Britain. e. Imports of motorcars from Japan to South Africa. 1. a, b, c, d and e 2. Only a, c and d 3. Only b, c and e 4. Only a and c 5. Only b and e 3. Which of the following are endogenous variables in the goods market model? 1. The level of output and income and investment spending. 2. Marginal propensity to consume and the level of output and income. 3. The level of output and income. 4. Investment spending. 4. The difference between expenditure on the gross domestic product (GDP) and gross domestic expenditure (GDE) is that … 1. expenditure on the GDP includes both imports and exports, while GDE includes exports and excludes imports. 2. expenditure on the GDP includes exports and excludes imports, while GDE includes both imports and exports. 3. expenditure on the GDP includes exports and excludes imports, while GDE includes imports and excludes exports. 4. expenditure on the GDP includes imports and excludes exports, while GDE includes exports and excludes imports. 5. Which of the following are correct in terms of the goods market model? a. G↑ → Z↑ → Y↑ → YD↑ → C↑ b. I↑ → Z↑ → Y↑ → YD↑ → C↑ c. T↓ → Z↑ → Y↑ → YD↑ → C↑ d. c0↑ → Z↑ → Y↑ → YD↑ → C↑ 1. Only a, b and c 2. Only a, b and d 3. Only b, c and d 4. Only a, c and d 5. a, b, c and d