Exam (elaborations)
distinction guaranteed
- Course
- Institution
direct passport to 95%+ distinction, filtered to contain solutions, explanations and calculations only
[Show more]
Seller
Follow
BMZAcademy
Reviews received
Content preview
BMZ 0743895097 blardyb@gmail.comIn the Keynesian model, exports...
remain unaffected by changes in output
Question text
The question is based on the information below:
If the Keynesian consumption function is C = 100 + 0.2 Y and disposable income is R
10 000, then:
The amount of total saving is
Y = C + S (income is consumed or saved)
C = a + bY (consumption is a function of income
S = Y – C (saving is what is left in income when part is consumed)
S = Y – [a + bY] (substitute a + bY for C)
S = Y – a - bY (expanding]
S = -a + Y(1-b) [factorising terms in Y
S = -100 + 0.8*10 000 (given a = 100; b = 0.2 and Y = 10 000)
R7 900
Question text
Which of the following is correct about an increase in interest rate in the Keynesian
model?
decrease investment
there is a negative relationship between investment and interest rates; interest is a cost of
borrowing (cost of capital) such that if interest rate is high the willingness to invest will be
low since it is expensive to invest or to borrow
Question text
Use a Keynesian model to calculate the answer.
Full employment output = 80 million
For more info contact BMZ@0743895097 WhatsApp/telegram/call/SMS email blardyb@gmail.com
,BMZ 0743895097 blardyb@gmail.com
Investment = 20 million
Autonomous consumption = 15 million
The marginal propensity to consume = 0,6
What will the equilibrium level of income be?
Equilibrium income is m*A
1 1 1 1
m is multiplier 1−𝑚𝑝𝑐 = 𝑚𝑝𝑠 = 0.4 = 1−0.6 = 2.5
A = sum of all autonomous components = ∑(I;C) = 20M+15M = 35million
EQ = 𝑚 ∗ 𝐴 = 2.5 × 35
87,5 million
Question text
A decrease in Investment spending will cause a/an
decrease in aggregate demand
𝐴𝐷 = 𝐶 + 𝐼 + 𝐺 + 𝑁𝑋
And there is direct relationship between AD and its components, suh that they increase
of decrease together
Question text
In the AD-AS model, the aggregate demand curve shows…
the relationship between the general price level and the level of total expenditure.
Question text
The appropriate demand management policy during a recession is ...
a decrease in tax rates.
Low taxes encourage spending through investing and consuming hence more activity
and more demand for goods and factors of production eg labour leading to higher
output and income hence exist from recession (a situation of low employment, low
activity, low output, low income)
For more info contact BMZ@0743895097 WhatsApp/telegram/call/SMS email blardyb@gmail.com
,BMZ 0743895097 blardyb@gmail.com
Declaimer
This document is not the official answer to UNISA 2022 ECS1601, rather only a
personal teaching guide for BMZ. The document cannot be used as the answer for the
assignment 7 ecs1701 neither should it be used to cheat, rather just guide on how to
do a analyse questions in microeconomics. No part of this work should be extracted
for submission neither regenerated for submission as final answer. We encourage
students to use this document only as a guideline,
We are contactable at 0743895097 (WhatsApp, telegram, calls, sms), for any further
information or guidelines on research writing and other academic guidance. We offer
personalised tutorial assistance and coaching for different modules including MACRO
& MICROECONOMICS, MONETARY ECONOMICS, LABOUR ECONOMICS,
PUBLIC ECONOMICS, DEVELOPMENT ECONOMICS, INTERNATIONAL
ECONMOMICS, ECONOMETRICS, BUSINESS MANAGEMENT, HUMAN
RESOURCE MANAGEMENT, ACCOUNTING, MARKETING, PUBLIC
ADMINSTRATION AND QUANTITATIVE SKILLS
For more info contact BMZ@0743895097 WhatsApp/telegram/call/SMS email blardyb@gmail.com
, BMZ 0743895097 blardyb@gmail.com
For more info contact BMZ@0743895097 WhatsApp/telegram/call/SMS email blardyb@gmail.com
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMZAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.85. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now