Assessment 4
Started on Friday, 6 October 2023,
State Finished
Completed on Friday, 6 October 2023,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
If the inflation rate increases and nominal interest rate is unchanged, then
_________.
a.
the nominal interest rate will decrease
b.
the real interest rate will be unchanged
c.
the real interest rate will increase
d.
the real interest rate will decrease
Feedback
Refer to section 10.3 of the prescribed textbook.
Question 2
The appropriate policy measure to combat inflation would be to …
a.
increase aggregate spending.
b.
decrease productivity.
c.
increase the repo rate.
d.
decrease taxes.
,Feedback
See section 10.4 of the prescribed textbook.
Question 3
Which one of the following is the cause of demand-pull inflation?
a.
a decrease in interest rates
b.
the leftward shift of the AD curve
c.
a decrease in government spending
d.
an increase in the cost of labour
Feedback
Refer to section 10.4 of the prescribed textbook.
Question 4
The following question is based on the table below:
Month Consumer price index
2012 2013
January 50.3 60.2
February 52.4 61.1
April 53.2 63.1
May 55.5 64.2
June 56.1 65.3
What is the annual inflation rate for May 2013?
a.
,15.68
b.
1.74
c.
13.55
d.
8.7
Feedback
Refer to section 10.2 of the prescribed textbook.
Question 5
The distribution effects of inflation are best described by …
a.
creditors benefiting at the expense of debtors.
b.
borrowers benefiting at the expense of lenders.
c.
the poor benefiting at the expense of the rich.
d.
the elderly benefiting at the expense of the young.
Feedback
Refer to section 10.3 of the prescribed textbook.
Question 6
Inflation can be caused by a/an ...... Within the AD-AS model, this will be
illustrated by a ......
a.
decrease in exports earnings; leftward shift of the AD curve
b.
rise in consumption spending; leftward shift of the AD curve
c.
fall in crude oil price; rightward shift of the AS curve
, d.
high wage demands by trade unions; leftward shift of the AS curve
Feedback
See section section 10.4 of the prescribed textbook.
Question 7
Which one of the following statements regarding unemployment is correct?
a.
Masindi is trained as a nurse. She is moving to Tshwane soon, so she quit her job in
Durban. Masindi is confident that she will find a job in Tshwane and we may
therefore classify her as structurally unemployed.
b.
Following a recession, Mandla loses his job in the mines job due to lack of
sufficient demand for aggregate demand in the economy. Mandla is cyclically
unemployed.
c.
Tariff reduction in the textile industry and illegal imports forced the textile factory
where Mpho works to close down. Mpho and his colleagues are frictionally
unemployed.
d.
Lebo would like to earn money, but just cannot be bothered to apply for a job. Lebo
is seasonally unemployed.
Feedback
Refer to section 21.1 (types of unemployment).
Question 8
Which of the following is the cost of unemployment?
(a) tends to give rise to crime
(b) a decrease in tax revenue
(c) an increase in government spending
a.
a) and (b) are correct
Started on Friday, 6 October 2023,
State Finished
Completed on Friday, 6 October 2023,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
If the inflation rate increases and nominal interest rate is unchanged, then
_________.
a.
the nominal interest rate will decrease
b.
the real interest rate will be unchanged
c.
the real interest rate will increase
d.
the real interest rate will decrease
Feedback
Refer to section 10.3 of the prescribed textbook.
Question 2
The appropriate policy measure to combat inflation would be to …
a.
increase aggregate spending.
b.
decrease productivity.
c.
increase the repo rate.
d.
decrease taxes.
,Feedback
See section 10.4 of the prescribed textbook.
Question 3
Which one of the following is the cause of demand-pull inflation?
a.
a decrease in interest rates
b.
the leftward shift of the AD curve
c.
a decrease in government spending
d.
an increase in the cost of labour
Feedback
Refer to section 10.4 of the prescribed textbook.
Question 4
The following question is based on the table below:
Month Consumer price index
2012 2013
January 50.3 60.2
February 52.4 61.1
April 53.2 63.1
May 55.5 64.2
June 56.1 65.3
What is the annual inflation rate for May 2013?
a.
,15.68
b.
1.74
c.
13.55
d.
8.7
Feedback
Refer to section 10.2 of the prescribed textbook.
Question 5
The distribution effects of inflation are best described by …
a.
creditors benefiting at the expense of debtors.
b.
borrowers benefiting at the expense of lenders.
c.
the poor benefiting at the expense of the rich.
d.
the elderly benefiting at the expense of the young.
Feedback
Refer to section 10.3 of the prescribed textbook.
Question 6
Inflation can be caused by a/an ...... Within the AD-AS model, this will be
illustrated by a ......
a.
decrease in exports earnings; leftward shift of the AD curve
b.
rise in consumption spending; leftward shift of the AD curve
c.
fall in crude oil price; rightward shift of the AS curve
, d.
high wage demands by trade unions; leftward shift of the AS curve
Feedback
See section section 10.4 of the prescribed textbook.
Question 7
Which one of the following statements regarding unemployment is correct?
a.
Masindi is trained as a nurse. She is moving to Tshwane soon, so she quit her job in
Durban. Masindi is confident that she will find a job in Tshwane and we may
therefore classify her as structurally unemployed.
b.
Following a recession, Mandla loses his job in the mines job due to lack of
sufficient demand for aggregate demand in the economy. Mandla is cyclically
unemployed.
c.
Tariff reduction in the textile industry and illegal imports forced the textile factory
where Mpho works to close down. Mpho and his colleagues are frictionally
unemployed.
d.
Lebo would like to earn money, but just cannot be bothered to apply for a job. Lebo
is seasonally unemployed.
Feedback
Refer to section 21.1 (types of unemployment).
Question 8
Which of the following is the cost of unemployment?
(a) tends to give rise to crime
(b) a decrease in tax revenue
(c) an increase in government spending
a.
a) and (b) are correct
