Exam (elaborations)
ECS2602 ASSIGNMENT 3 SEMESTER 1 2023
- Course
- Institution
ECS2602 ASSIGNMENT 3 SEMESTER 1 2023
[Show more]
Seller
Follow
omoka11
Reviews received
Content preview
ECS2602Assignment 3
Semester 1
2023
,ECS2602
ASSIGNMENT 3
SEMESTER 1
, 1. Which of the following statements are correct?
a. Macroeconomics studies the determination of the level of output and income for a
specific firm.
b. In macroeconomics we focus on the interaction between different markets,
such as the goods market, the financial market, the labour market and the foreign
exchange market.
c. Real GDP per capita is widely used as a measure of economic welfare or
wellbeing of the residents of a country.
d. The main instrument of fiscal policy is the budget, while the main policy variable is the
interest rate.
e. A contractionary monetary policy implies a decrease in government spending and an
increase in taxation.
1. a, b and c
2. b, c and d
3. b, d and e
4. Only b and c
5. b, c and e
Explanation:
The correct option is 4. Statement a is incorrect. Macroeconomics deals with the economy
as a whole and not a specific firm. Statement b is correct. That is what we will be studying in
this module. Statement c is correct. Statement d is incorrect. The policy variables are
government spending and taxation. Statement e is incorrect. The contractionary monetary
policy implies a decrease in the money supply and therefore results in an increase in the
interest rate.
2
, 2. Which of the following statements are correct?
a. In macroeconomics we focus on the determination of the demand for and supply of
individual goods and the determination of their prices.
b. The impact of fiscal and monetary policy on the level of output and income is
an important topic in this module.
c. If the population in South Africa grows at 5% per year and the economic growth
rate is 3% per year, a decline in the real GDP per capita occurs.
d. Expansionary monetary policy during a recession is an example of a
stabilisation policy.
e. An expansionary fiscal policy implies a decrease in government spending and/or an
increase in taxation.
1. a, b and c
2. b, c and d
3. b, d and e
4. Only b and c
5. b, c and e
Explanation:
The correct option is 2. Statements b, c and d are correct. Statement a is incorrect. The
focus in Macroeconomics is on the current level of output and income, given the structure of
the economy and not on the determination of the demand for and supply of individual goods
and the determination of their prices. Statement e is incorrect. Expansionary fiscal policy
implies an increase in government spending and/or a decrease in taxation.
3
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 omoka11. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now