ECS1601 ASSESSMENT 4 SEMESTER 2 2026 Question 7 Not yet answered Marked out of 1.00 Flag question Which one of the following is an example of inflation? a. A 4% increase in the tax rate. b. A 4% increase in the petrol price. c. A 4% increa

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Educating the world for a better change

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Table of Contents

Question 1 Which AD-AS movement is consistent with wage-driven inflation? 8

Question 2 The question above refers. Please provide a justification for your
answer. ...................................................................................................................... 8

Question 3 A lender receives 5% interest on a one-year loan while inflation over the
year is 6%. What happens to the real value of the repayment? ........................... 9

Question 4 The question above refers. Please provide a justification for your
answer. ...................................................................................................................... 9

Question 5 If imported fuel and transport costs rise sharply, the most suitable
response in an economy with high unemployment would be to... ...................... 9

Question 6 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 10

Question 7 Which one of the following is an example of inflation? .................. 10

Question 8 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 11

Question 9 Which statement best distinguishes the consumer price index (CPI)
from the producer price index (PPI)? ................................................................... 11

Question 10 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 12

Question 11 Which factor is most likely to place upward pressure on firms’
production costs and contribute to cost-push inflation? ................................... 13

Question 12 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 13


Educating the world for a better change

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Question 13 Which one of the following will increase the unemployment pool?14

Question 14 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 14

Question 15 Thomas was laid off from his job because of the recession. He is-------
----- unemployed. Kat works at a grape farm near Cape Town, but only for three
months of the year. For the rest of the year, she is --------------unemployed. ..... 15

Question 16 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 15

Question 17 In 2008, South Africa experienced higher job losses in the mining
industry, resulting from insufficient demand for mining commodities. This is an
example of... ........................................................................................................... 16

Question 18 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 16

Question 19 Increased unemployment benefits and less incentive to work can be
illustrated by ........................................................................................................... 17

Question 20 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 17

Question 21 Susan studied nursing. After she graduated, she applied for a position.
However, there were only numerous vacancies for doctors. She is still unemployed.
What type of unemployment is Susan experiencing? ........................................ 18

Question 22 The question above refers. Please provide a justification for your
answer. .................................................................................................................... 18

Question 23 If workers in clothing shops are retrenched because of a recession,
what do you call this type of unemployment? ..................................................... 19



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