Assessment 1: Videos and Questions
Assessment 1 is based on learning units 1, 2 and 3 (60 marks)
How to complete Assignment 1:
Complete all 30 fill-in questions below in the spaces provided. Save the document as PDF
document. Upload the assignment on the ECS2602 module site on myUnisa as a PDF
document. No email submissions will be accepted.
Learning Unit 1 (18 marks)
Watch the following video and answer questions 1 to 5 based on the video. (8 marks)
When answering the questions, use the exact words as the presenter.
The Difference Between Fiscal and Monetary Policy (youtube.com)
Same video: different link: https://youtu.be/o0Yt6buayZ4?si=YdiNNhPB5sn_XSJC
Question 1:
According to the video, fiscal policy is the use of government spending and taxation to influence the
economy. (2)
Question 2:
Fiscal policy is a powerful tool. The key to its power is the ability to influence aggregate demand (1)
Question 3:
In the video, there is a reference to supply-side economists, like Arthur Laffer. (1)
Question 4:
Monetary policy is the way the central bank influences the economy through the management of
the money supply and interest rates. (3)
Question 5:
The central bank system in the United States is called the Federal Reserve. (1)
Work through LU 1 of the study guide and answer questions 6 to 11. (10 marks)
Question 6:
In the video the more traditional financial market is explained where it is assumed that the central
bank is in control of the money supply, in other words, the exogenously determined money
approach. In our particular financial market in ECS2602 module, we follow the endogenously
determined money approach where expansionary monetary policy in South Africa entails a(n)
decrease in the interest (repo) rate in order to increase the demand for goods in the economy and
or a(n) increase in the level of output and income. (3)
1|Page
Assessment 1 is based on learning units 1, 2 and 3 (60 marks)
How to complete Assignment 1:
Complete all 30 fill-in questions below in the spaces provided. Save the document as PDF
document. Upload the assignment on the ECS2602 module site on myUnisa as a PDF
document. No email submissions will be accepted.
Learning Unit 1 (18 marks)
Watch the following video and answer questions 1 to 5 based on the video. (8 marks)
When answering the questions, use the exact words as the presenter.
The Difference Between Fiscal and Monetary Policy (youtube.com)
Same video: different link: https://youtu.be/o0Yt6buayZ4?si=YdiNNhPB5sn_XSJC
Question 1:
According to the video, fiscal policy is the use of government spending and taxation to influence the
economy. (2)
Question 2:
Fiscal policy is a powerful tool. The key to its power is the ability to influence aggregate demand (1)
Question 3:
In the video, there is a reference to supply-side economists, like Arthur Laffer. (1)
Question 4:
Monetary policy is the way the central bank influences the economy through the management of
the money supply and interest rates. (3)
Question 5:
The central bank system in the United States is called the Federal Reserve. (1)
Work through LU 1 of the study guide and answer questions 6 to 11. (10 marks)
Question 6:
In the video the more traditional financial market is explained where it is assumed that the central
bank is in control of the money supply, in other words, the exogenously determined money
approach. In our particular financial market in ECS2602 module, we follow the endogenously
determined money approach where expansionary monetary policy in South Africa entails a(n)
decrease in the interest (repo) rate in order to increase the demand for goods in the economy and
or a(n) increase in the level of output and income. (3)
1|Page
