ECS2602 EXAM PACK

ECS2602 TEST BANK Question 1 Which of the following statements is/are correct? a) In this module we only study the demand side of the economy which includes the goods market and the financial market. The labour market form part of the supply side analysis and are therefore excluded from this module. b) The two most important accounts of the balance of payments are the current account and the financial account. c) If total output decreases with 2% during a specific year and the general pri...

Macroeconomics studies the determination of the level of output and income for a specific firm. False. Macroeconomics deals with the economy as a whole and not a specific firm. The main instrument of fiscal policy is the budget, while the main policy variable is the interest rate. False. The policy variables are government spending and taxation

2018/1 1.1 Which one of the following statements is not a macroeconomic issue? 1. The unemployment rate in South Africa, according to the strict definition, was 26,6% in 2016. 2. The drought experienced in 2015/16 reduced many crop harvests and caused food price inflation in South Africa. 3. The annual inflation rate in South Africa rose from 2015 to 2016. 4. Because of high inflation, it is expected that the interest rate will increase. 5. The drought experienced in 2015/16 reduced the...

ECS2602 TEST BANK Question 1 Which of the following statements is/are correct? a) In this module we only study the demand side of the economy which includes the goods market and the financial market. The labour market form part of the supply side analysis and are therefore excluded from this module. b) The two most important accounts of the balance of payments are the current account and the financial account. c) If total output decreases with 2% during a specific year and the general pric...

SUGGESTED MEMO 2015 MAY/JUNE ECS2602 SECTION A QUESTION 1 a) Multiplier Formula Multiplier = 1 (1−0.8) = 5 b) = 100 + 50 + 40 - 0.8(20) = 174 c) equilibrium ie AE = Y DI = Y – T; AE = C + I + G + (X - M) C = a + b(Y – T) C = consumption spending, DI = disposable income, I = investment expenditure, G = government spending, T = tax revenue, X = exports, M = imports, Y = real GDP, b = Mpc, a = autonomous consumption AE = 100 + 0.8(Y -20) + 50 + 40 AE = 100 + o.8Y – 16 + 90 ...